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
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