Swedbank is currently under investigation by authorities for alleged money laundering and disclosure of insider information. We consider that this is damaging the bank's reputation and could raise concerns among the bank's investor base. Ongoing investigations could also reveal serious deficiencies in the bank's controls and governance. The bank is undertaking management changes following the board of directors dismissing the CEO. As a result, we are placing our 'AA-/A-1+' long- and short-term issuer credit ratings on Swedbank and its outstanding debt on CreditWatch with negative implications. We intend to resolve the CreditWatch within three months. The outcome will depend on the bank's ability to stabilize its franchise and the effect of the ongoing investigations on its business and financial profiles.
