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.
Rating rationale
The affirmation reflects the bank's low risk appetite, solid capital position, diverse access to funding and strong earnings. We have revised our assessment of the bank's risk governance to reflect our view of strengthened risk reporting standards and limit monitoring compared to peers of similar size and complexity. We also believe the implementation of an internal audit function in 2026, acting as a third line of defence, reduces the risk of regulatory fines and supports above-market loan growth.
We take a positive view of the bank's membership in the Lokalbanksamarbeidet banking cooperative, which enables product diversity, shared development costs and the opportunity to finance residential retail mortgage loans through jointly owned covered-bond company Verd Boligkreditt AS.
The rating is constrained by the bank's concentrated exposure to real-estate collateral in the Innherred region north of Trondheim. It is also constrained by the bank's size and moderate market share in its operating region.
Stable outlook
The stable outlook reflects our view that the bank's low risk appetite, strong real-estate collateral and solid cost efficiency will enable resilience during a modest economic slowdown. We expect the bank's capital ratios to remain at strong levels after the positive impact of implementing the EU's Capital Requirements Regulations III (CRR3), despite projections of above-domestic credit growth.
We could raise the rating to reflect a commitment to 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 maintained below 1%, 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.
| 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.