Nordic Credit Rating (NCR) has affirmed its 'A-' long-term issuer rating on Norway-based savings bank Askim & Spydeberg Sparebank. The outlook is stable. The 'N2' short-term issuer rating, 'A-' senior unsecured issue ratings, 'BBB+' Tier 2 issue rating, and 'BBB-' Additional Tier 1 issue rating have also been affirmed.
Rating rationale
The affirmation reflects the bank's solid capital position and earnings, low risk appetite, and ready access to funding. We have revised our assessment of the bank's capital position, expecting it to maintain a consolidated Tier 1 ratio above 24% through 2028. We have also revised our assessment of the bank's risk governance to reflect our view of continued investments and enhancements in this area. Extraordinary IT-related costs are expected to weigh on cost efficiency in 2026, alongside tougher competition and slow domestic growth. Earnings are expected to remain strong, although have adjusted our assessment of earnings to reflect somewhat weaker cost efficiency.
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 Askim & Spydeberg Sparebank's concentrated exposure to residential and commercial real estate and the construction sector in northern Østfold county and the district of Follo. Although the bank has strong market share in its core operating region, the stiffer competition in the Follo district growth markets is an additional rating constraint.
Stable outlook
The stable outlook reflects our view that Askim & Spydeberg Sparebank's earnings and cost efficiency will remain strong, offsetting moderate credit losses. We believe the bank's strong capital position and diverse funding profile will prove resilient against a modest economic slowdown. The outlook also factors in continued improvements in risk governance.
We could raise the rating to reflect pre-provision income to risk exposure amount sustainably above 3%, and a stronger market position in the district of Follo and the northern Østfold county, and a sustained reduction in Stage 2 and Stage 3 loans.
We could lower the rating to reflect a Tier 1 capital ratio below 20% over a protracted period, a material deterioration in the local operating environment that negatively affects asset quality, or a pre-provision income below 2% of risk exposure amount for a protracted period.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | A- | A- |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N2 | N2 |
| Senior unsecured issue rating: | A- | A- |
| Tier 2 issue rating: | BBB+ | BBB+ |
| Additional Tier 1 issue rating: | BBB- | BBB- |
Contacts:
Christian Yssen, analyst, +4740019900, christian.yssen@nordiccreditrating.com
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com
Sean Cotten, lead senior analyst, +46735600337, sean.cotten@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.