Research Update: Nordea Bank And Operating Subsidiaries Affirmed At 'AA-/A-1+' On Bank Criteria Change; Outlook Stable Nov 11
- Language: English
- Published: November 2011
The ratings on Sweden-based Nordea Hypotek AB reflect its deep integration within Nordea Bank (AA-/Stable/A-1+), good customer accessibility through Nordea's network of branches, excellent asset quality, sound funding base, and good capitalization. The ratings are constrained by the company's geographical and business concentration and its limited profitability in a highly competitive low margin market. With assets of Swedish krona (SEK) 319.7 billion ($50 billion at SEK6.40 to $1) on Dec. 31, 2007, Nordea Hypotek ranks as the third-largest mortgage lender in Sweden. It operates through Nordea Bank's nationwide branch network of 280 branches, providing credit with property as collateral, mainly to retail customers. We consider Nordea Hypotek's asset quality excellent. The loan portfolio is dominated by households (67% on Dec....
Companies mentioned in this report are:
- Nordea Hypotek AB
- Nordea Bank AB
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included. SHOW LESS READ MORE >