Nordic Credit Rating (NCR) has affirmed its 'BBB+' long-term issuer rating on Norway-based savings bank Aasen Sparebank. The outlook is stable. The 'N2' short-term issuer rating, 'BBB+' senior unsecured issue ratings, 'BBB' Tier 2 issue rating, and 'BB+' Additional Tier 1 issue rating have also been affirmed, in accordance with NCR's revised financial institutions rating methodology. The ratings are no longer under criteria review.
Rating rationale
NCR has reviewed its long-term and short-term issuer ratings, issue ratings, and outlook on Aasen Sparebank following the revision of its methodology for assigning ratings to financial institutions (see Related publications). We consider that our amendments to the methodology have not had a material impact on our view of the bank's creditworthiness, and that there have not been significant changes in its overall risk profile. Consequently, we have affirmed our ratings and maintained the stable outlook on the ratings on Aasen Sparebank.
Stable outlook
The stable outlook reflects our view that the bank's low risk appetite, strong real-estate collateral, improved earnings and solid cost efficiency will enable resilience during a modest economic slowdown. We forecast relatively strong loan growth in 2025 and 2026. However, we expect capital ratios will remain stable, apart from a significant boost in 2025 due to the implementation of the EU's Capital Requirements Regulations III (CRR3).
We could raise the rating to reflect Aasen Sparebank's commitment to maintaining material regulatory capital buffers and a Tier 1 ratio sustainably above 24%. We could also raise the rating if pre-provision earnings to risk exposure amount (REA) moves sustainably above 3% and share of net Stage 3 loans significantly below 1% for a prolonged period, or if the bank exhibits an improved market position without material increase in risk appetite.
We could lower the rating to reflect a material deterioration in the local operating environment that weakens the bank's asset quality, or if there is a sustained reduction in the Tier 1 capital ratio to below 18%. We could also downgrade Aasen Sparebank if risk-adjusted earnings metrics fall below 2% of REA over a protracted period.
Related publications
i) Aasen Sparebank assigned 'BBB+' long-term issuer rating; Outlook stable, 7 Mar. 2025.
ii) Nordic Credit Rating publishes amended Financial Institutions Rating Methodology, 12 May 2025.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB+ | BBB+ |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N2 | N2 |
| Senior unsecured issue rating: | BBB+ | BBB+ |
| Tier 2 issue rating: | BBB | BBB |
| Additional Tier 1 issue rating: | BB+ | BB+ |
Contacts:
Christian Yssen, analyst, +4740019900, christian.yssen@nordiccreditrating.com
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
The methodology documents used for this rating are NCR's Financial Institutions Rating Methodology published on 12 May 2025, NCR's Rating Principles published on 14 Feb. 2024 and NCR's Group and Government Support Rating Methodology published on 14 Feb. 2024. For the full regulatory disclaimer please see the rating report.