Nordea Bank Abp Outlook Revised To Negative On Headwinds To Strategy Execution Amid COVID-19 Outbreak; Ratings Affirmed

A weakening economic environment following the outbreak of COVID-19, as well as weaker business prospects, will make it more difficult for Nordea Bank's to improve its earnings, and targeted efficiency gains could materialize later than we previously assumed. We believe the bank's impairment charges will increase in 2020 due to its exposure to some cyclical and vulnerable corporate sectors, which are under more stress due to the COVID-19 pandemic. Although the bank has a strong balance sheet, we believe there is increased uncertainty surrounding its ability to restore profitability and meet financial targets. We are therefore revising the outlook on Nordea Bank Abp to negative from stable, and affirming the 'AA-/A-1+' ratings on the bank. The negative outlook on Nordea

...April 30, 2020 - A weakening economic environment following the outbreak of COVID-19, as well as weaker business prospects, will make it more difficult for Nordea Bank's to improve its earnings, and targeted efficiency gains could materialize later than we previously assumed. - We believe the bank's impairment charges will increase in 2020 due to its exposure to some cyclical and vulnerable corporate sectors, which are under more stress due to the COVID-19 pandemic. - Although the bank has a strong balance sheet, we believe there is increased uncertainty surrounding its ability to restore profitability and meet financial targets. - We are therefore revising the outlook on Nordea Bank Abp to negative from stable, and affirming the '##-/A-1+' ratings on the bank. - The negative outlook on Nordea Bank reflects uncertainties in meeting strategic targets by 2022, in the context of a weakening external environment, which could lead us to lower the ratings. FRANKFURT (S&P Global Ratings) April...

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