Eksportfinans ASA

The positive outlook on Eksportfinans reflects its track record in successfully managing risks related to structured funding, as well as our anticipation that risks will likely decline further as the bank progresses the wind-down. With decreasing complexity and balance sheet scale to wind down, we expect that the sizable liquidity portfolio and strong capital will increasingly buffer the remaining risks. We expect Eksportfinans' ownership structure will remain unchanged and expect ongoing support from its owners in case of adverse scenarios. We could revise the outlook to stable if capital was distributed at a faster pace than anticipated or if there was a marked deterioration in the bank's liquidity portfolio. Key personnel risk also remains a consideration to ensure operational risks

...Eksportfinans' management has demonstrated its capacity to manage the structured funding as the wind-down progresses. Over the past 13 years, Eksportfinans' management has successfully managed the wind-down of a significant portion of the company's balance sheet. Total assets stood at just under Norwegian krone (NOK) 6.0 billion (about 0.5 billion) at June 30, 2024, compared with NOK215.5 billion (18.7 billion) at year-end 2010. Many of the bank's more complex funding instruments matured in 2023. Even though some instruments that require derivatives for hedging remain outstanding, tail risks related to Eksportfinans' funding continued to reduce. Operational risks related to the wind-down persist but are somewhat mitigated by shareholders' ongoing support. Eksportfinans has 19 full-time employees. While owners can provide some support, competence is concentrated and significant functions are outsourced, meaning operational risks related to the wind-down remain. Our expectation of...

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