Nordic Credit Rating (NCR) has assigned a 'BBB' long-term issuer rating to Norway-based shipping lender Maritime & Merchant Bank ASA. The outlook is stable. An 'N3' short-term issuer rating has also been assigned, as well as a 'BBB' senior unsecured instrument rating.
Rating rationale
The long-term issuer rating reflects the bank's moderate risk appetite within a high-risk segment, exceptional capitalisation, and strong capital generation. The bank extends loans to the shipping sector, operating globally but with concentration in Norway and Europe. Its lending is fully collateralised, and the bank has a rigorous risk management and underwriting structure set up given its smaller size (total assets of NOK 7.5bn at year-end 2025). We also see the bank's strong track record, lack of non-performing loans and minimal incurred losses as positive. Although the funding profile is concentrated in price-sensitive retail deposits, a significant liquidity portfolio provides a buffer.
These strengths are partially offset by the bank's small scale and limited pricing power, given the global nature of ship financing. Other relative weaknesses include a concentrated loan portfolio and an older age profile of collateralised vessels. We view the bank's main owners as strong, but note that ownership concentration is relatively high.
Stable outlook
The stable outlook reflects our view that the bank is well positioned to manage the volatile economic environment and both upside and downside risks in the shipping sector. The outlook reflects growth at a relatively high pace in the coming years, provided it maintains prudent underwriting standards. While we do not anticipate a global economic recession, elevated turbulence is likely to persist for some time. The stable outlook also reflects the possibility of some increases to ownership concentrations, but that the ownership profile remains somewhat diversified.
We could raise the rating to reflect a materially improved market position and earnings stability, as shown through sustainable and profitable growth, combined with a more diversified funding profile, with continued prudent liquidity buffers.
We could lower the rating to reflect a significant deterioration in operating environment, impacting growth, profitability, and/or funding access. We could also lower the rating to reflect a material decrease in asset quality or underwriting standards, or a Tier 1 ratio below 22% over a protracted period.
| Rating list | Rating |
|---|---|
| Long-term issuer credit rating: | BBB |
| Outlook: | Stable |
| Short-term issuer credit rating: | N3 |
| Senior unsecured issue rating: | BBB |
Contacts:
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@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.