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Rising Household Debt Could Become A Headache For The Nordic Countries May 11 Product Image

Rising Household Debt Could Become A Headache For The Nordic Countries May 11

  • ID: 1810344
  • May 2011
  • Standard & Poors

FEATURED COMPANIES

  • Danske Bank A/S
  • Denmark (Kingdom of)
  • DNB Bank ASA
  • Finland (Republic of)
  • Nordea Bank AB
  • Norway (Kingdom of)
  • MORE

Abstract
The Nordic countries have a solid reputation as diversified and wealthy economies. Indeed, our 'AAA' sovereign ratings on Denmark, Finland, Norway, and Sweden rest on our view of these sovereigns' strong fiscal and external positions and policymakers' longstanding prudent management of their respective economies. Yet, over the past few years, we have seen a structural weakness emerging in the region: relatively high private sector debt, particularly household leverage mainly from rising mortgage borrowing. (Watch the related CreditMatters TV segment titled, "How Nordic Countries Could Combat Rising Household Debt," dated June 10, 2011.) Debt to disposable income has risen steeply in all four countries since 1995 (see chart 1). Denmark now has one of the highest private sector credit-to-GDP ratios in...

Companies mentioned in this report are:
- Denmark (Kingdom of)
- Finland (Republic of)
- Norway (Kingdom of)
- Sweden (Kingdom of) (Unsolicited Ratings)
- Danske Bank A/S
- Skandinaviska Enskilda Banken AB (publ)
- Swedbank AB
- Pohjola Bank PLC
- Svenska Handelsbanken AB
- DNB Bank ASA
- Nykredit Realkredit A/S
- Nordea Bank AB

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- Denmark (Kingdom of)
- Finland (Republic of)
- Norway (Kingdom of)
- Sweden (Kingdom of) (Unsolicited Ratings)
- Danske Bank A/S
- Skandinaviska Enskilda Banken AB (publ)
- Swedbank AB
- Pohjola Bank PLC
- Svenska Handelsbanken AB
- DNB Bank ASA
- Nykredit Realkredit A/S
- Nordea Bank AB

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