Nordic Credit Rating (NCR) has affirmed its 'BBB-' long-term issuer rating on Sweden-based niche lender Resurs Bank AB. The outlook is stable. The 'N3' short-term issuer rating, 'BBB-' senior unsecured issue rating, and 'BB+' Tier 2 instrument rating have also been affirmed.
Rating rationale
The affirmation reflects an improved operating environment for Nordic consumer lenders, some signs of progress in the bank's strategic transformation, and a continued decline in loss provisions. However, we continue to view Resurs Bank as weakened relative to its historical performance. The bank has faced significant loss provisions and reduced profitability and remains in the midst of a strategic transformation, including a change in ownership in 2024. Capital ratios are strengthening, mainly due to low or negative growth; however, we consider this effect temporary until growth resumes.
Our revision of the operating environment for Nordic consumer lenders reflects our view that, although regulatory focus on the sector remains high, regulatory risk to larger niche lenders' business models has decreased. Additionally, lower interest rates, reduced inflationary pressure, and more stable economies have decreased the likelihood of a significant deterioration in asset quality over the next few years. However, given uncertainty regarding when we will be able to fully see the effects of strategic and operational improvements, we have applied a transition notch to the rating.
Stable outlook
The stable outlook reflects our view that Resurs Bank has reached some stability following volatility in performance over the past few years. We see potential in its ongoing strategic investments, though expect that improvements will take some time to materialise, and costs will remain elevated in the meantime. The outlook also reflects a gradual improvement in asset quality metrics, however, we continue to expect loan losses to stabilise around 3%, a higher level than historical performance. The outlook also reflects our view that the current capital ratios are temporary until growth and dividend payments resume.
We could raise the rating to reflect a sustainable improvement in asset quality metrics, including loan losses and net Stage 2 and 3 loans improving to pre-2023 levels. We could also raise the rating to reflect stronger earnings, with pre-provision income over risk exposure amount exceeding 5.5x and cost efficiency below 50%, or to reflect a Tier 1 ratio sustainably around 18%.
We could lower the rating to reflect a further deterioration of asset quality metrics and earnings that severely impacts capital generation, or a worsening operating environment caused by a deep economic downturn or regulatory changes.
Related publications
i) Three Swedish niche banks' ratings affirmed; removed from criteria review, 1 Jul. 2025
ii) Resurs Bank long-term issuer rating lowered to 'BBB-'; Outlook stable, 13 Mar. 2025
iii) Nordic niche banks; building a foundation for growth, 4 Sep. 2025
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB- | BBB- |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N3 | N3 |
| Senior unsecured issue rating: | BBB- | BBB- |
| Tier 2 issue rating: | BB | BB |
Contacts:
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@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 Rating Principles published on 14 Feb. 2024, NCR's Group and Government Support Rating Methodology published on 14 Feb. 2024 and NCR's Financial Institutions Rating Methodology published on 12 May 2025. For the full regulatory disclaimer please see the rating report.