Nordic Credit Rating (NCR) said today that it had revised its outlook on the Swedish banking sector to stable from negative, while affirming its 'bbb+' assessment of the industry.
In our last review of the sector earlier this year, we revised our assessment score down by one notch to its current level (see NCR sees increased risk in the Swedish banking sector, published 3 Apr. 2020), mainly to reflect the initial impact of COVID-19 on the sector.
The stable outlook reflects our expectations of a flatter U-shaped recovery rather than the sharp V- or, in the worst case, W-shaped rebound that we anticipated previously. In our view, countries and markets are better prepared for any renewed upsurge in COVID-19, while localised outbreaks should prove easier to manage than national shutdowns. Better understanding of the virus has led to improved treatments, and we note that the Swedish government's finances remain in good shape thanks to higher tax income and lower support payments than we previously anticipated.
If you have any questions, please contact:
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
Geir Kristiansen, credit rating analyst, +4790784593, geir.kristiansen@nordiccreditrating.com