Nordic Credit Rating (NCR) has assigned a 'BBB+' long-term issuer rating to Sweden-based savings bank Sparbanken Bergslagen AB. 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 low to moderate risk appetite, strong capitalisation, relationship-based funding profile, above-average earnings, and solid competitive position in its core markets. We view the bank's cooperation with Swedbank AB positively, as it provides greater product diversity, shared IT costs, and access to retail mortgage financing. The bank was formed through a merger in early 2024 and operates across a wide geographical area, targeting newer markets to support growth opportunities.
The rating is constrained by the relatively weaker economic fundamentals in its traditional core markets and higher competitive pressure in newer markets. Although the bank's on-balance lending is largely collateralised by regional real estate, this results in sensitivity to local property values.
Stable outlook
The stable outlook reflects our expectation that Sparbanken Bergslagen will maintain a moderate risk appetite while pursuing growth slightly above the market, supported by larger investments in parts of its region. We expect the bank to preserve its strong earnings profile and strengthen its capital buffers over the coming years. Although we do not anticipate a recession based on current economic and geopolitical turmoil we believe the bank has sufficient buffers to manage potential increases in non-performing loans or loss provisions.
We could raise the rating to reflect an improved funding and liquidity profile, including increased diversification of funding sources and strengthened liquidity buffers. We could also raise the rating to reflect improvements to the regional operating environment in the bank's core market, or stronger competitive position in growth markets.
We could lower the rating to reflect a material deterioration in the regional operating environment, affecting growth prospects, profitability, or asset quality metrics, or to reflect a CET1 ratio below 18% 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
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.