On Oct. 3, 2008, Standard&Poor's Ratings Services lowered its long-term counterparty credit ratings on Sweden-based Swedbank AB to 'A' from 'A+'. At the same time, Standard&Poor's affirmed its 'A-1' short-term ratings on the bank. The outlook remains negative. The downgrade reflects the sharper-than-expected economic slowdown in the Baltic countries and the resulting negative implications for Swedbank's asset quality and earnings. Swedbank has a relatively high reliance on short-term funding in the U.S. and European wholesale markets, which makes the bank relatively vulnerable to refinancing risks. Swedbank is exposed to the sharper-than-expected economic contraction in the Baltic countries. Via Hansabank, its subsidiary, which it is currently renaming Swedbank, the group has been one of the main players
