Nordic Credit Rating (NCR) said today that it had updated the short-term rating scale in its Ratings Principles methodology and assigned new short-term ratings to 10 financial institutions in accordance with the revised scale. On 24 May 2022, NCR placed all public issuer ratings under criteria review with a view to assigning new short-term ratings in accordance with the revised short-term scale. Our review of financial institutions is now complete and all ratings have been removed from criteria review. The amendments have had no effect on any outstanding long-term issuer or issue ratings on financial institutions.
The revised short-term scale ranges from "N1" (highest) to "N6" (lowest) and increases the differentiation we apply to short-term ratings. Under our revised methodology, in instances where the long-term issuer rating is "A-", "BBB+", "BBB-" or "BB+", in addition to the standard mapping, alternative short-term ratings are also possible. Our analysis resulted in the standard mapping based on the long-term issuer rating for all rated financial institutions.
For further details, see the separate rating action report on each entity, which can be found on its respective NCR issuer page.
Figure 1. New short-term ratings assigned to financial institutions under revised methodology
Issuer | Long-term issuer rating | New short-term rating | Previous short-term rating |
Collector Bank AB (publ) | BBB- | N3 | N-1+ |
Danske Hypotek AB (publ) | A | N2 | N-1+ |
Kredittforeningen for Sparebanker | A- | N2 | N-1+ |
Nordax Bank AB (publ) | BBB | N3 | N-1+ |
Resurs Bank AB (publ) | BBB | N3 | N-1+ |
Sparbanken Rekarne AB (publ) | A- | N2 | N-1+ |
Sparbanken Västra Mälardalen | BBB+ | N3 | N-1+ |
SpareBank 1 Østfold Akershus | A | N2 | N-1+ |
Sörmlands Sparbank | BBB+ | N3 | N-1+ |
Varbergs Sparbank AB (publ) | A- | N2 | N-1+ |
Contacts:
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com