We consider that potential extraordinary government support for European banks will likely decrease as resolution frameworks are put into place. Sweden-based Swedbank AB has continued to improve its capital position and financial flexibility, and we project margins to increase in 2014. However, the potential reduction in implicit government support is a risk to the ratings on the bank. We are revising our outlook on the long-term rating on Swedbank to negative from stable. At the same time, we are affirming our 'A+/A-1' counterparty credit ratings on Swedbank. The negative outlook reflects the possibility that we may lower the long-term rating by one notch by year-end 2015 if we believe there is a greater likelihood that senior unsecured liabilities may incur
