Nordic Credit Rating (NCR) has affirmed its 'BBB+' long-term issuer rating on Norway-based savings bank Voss Veksel- og Landmandsbank ASA (Vekselbanken). The outlook is stable. The 'N2' short-term issuer rating, 'BBB+' senior unsecured issue ratings, 'BBB' Tier 2 issue rating, and 'BB+' Additional Tier 1 issue rating have also been affirmed, in accordance with NCR's revised financial institutions rating methodology. The ratings are no longer under criteria review.
Rating rationale
NCR has reviewed its long-term and short-term issuer ratings, issue ratings, and outlook on Vekselbanken following the revision of its methodology for assigning ratings to financial institutions (see Related publications). We consider that our amendments to the methodology have not had a material impact on our view of Vekselbanken's creditworthiness, and that there have not been significant changes in its overall risk profile. Consequently, we have affirmed our ratings and maintained the stable outlook on the ratings on Vekselbanken.
Stable outlook
The stable outlook reflects our view that Vekselbanken's strong earnings will offset a weakened domestic economy and the bank's slightly elevated credit provisions. We forecast that the bank's cost efficiency will remain stronger than that of its peers. We also expect the bank will maintain strong capital ratios, further boosted by the prospective positive impact of the EU's Capital Requirements Regulations III (CRR3). However, we will continue to monitor the bank's long-term capital strategy.
We could raise the rating to reflect Vekselbanken's commitment to a consolidated Tier 1 ratio above 22%; a lower commuting time between the cities of Bergen and Voss, leading to stronger regional economic growth; or a brighter economic outlook and improved asset quality.
We could lower the rating to reflect a material deterioration in the local operating environment that negatively affects the bank's asset quality, a consolidated Tier 1 ratio below 18% over a protracted period, or pre-provision income/consolidated risk exposure amount below 2% for a protracted period.
Related publications
i) Voss Veksel- og Landmandsbank ASA assigned 'BBB+' long-term issuer rating; Outlook stable, 29 Aug. 2024.
ii) Nordic Credit Rating publishes amended Financial Institutions Rating Methodology, published 12 May 2025.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB+ | BBB+ |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N2 | N2 |
| Senior unsecured issue rating: | BBB+ | BBB+ |
| Tier 2 issue rating: | BBB | BBB |
| Additional Tier 1 issue rating: | BB+ | BB+ |
Contacts:
Christian Yssen, analyst, +4740019900, christian.yssen@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Sean Cotten, chief rating officer, +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.