Saxo Bank A/S Upgraded To 'A-' On Increasing Resolvability; Outlook Stable

Saxo Bank A/S (Saxo) has started to expand its subordinated debt buffers materially to meet its minimum requirement for own funds and eligible liabilities (MREL) as a systemically important Danish bank. Combined with a supportive preferred resolution strategy, we expect the bank will build a substantial additional loss-absorbing capacity (ALAC) buffer that will provide default protection for senior preferred liabilities. We therefore raised our long-term issuer credit rating to 'A-' from 'BBB'. At the same time, we assigned our 'A' long-term resolution counterparty rating. The stable outlook reflects our view that Saxo will continue to maintain solid operating profitability, robust capitalization, and an effective risk management. DUBAI (S&P Global Ratings) March 28, 2024--S&P Global Ratings today raised its long-term issuer

...March 28, 2024 - Saxo Bank A/S (Saxo) has started to expand its subordinated debt buffers materially to meet its minimum requirement for own funds and eligible liabilities (MREL) as a systemically important Danish bank. - Combined with a supportive preferred resolution strategy, we expect the bank will build a substantial additional loss-absorbing capacity (ALAC) buffer that will provide default protection for senior preferred liabilities. - We therefore raised our long-term issuer credit rating to 'A-' from '###'. At the same time, we assigned our 'A' long-term resolution counterparty rating. - The stable outlook reflects our view that Saxo will continue to maintain solid operating profitability, robust capitalization, and an effective risk management. DUBAI (S&P Global Ratings) March 28, 2024--S&P Global Ratings today raised its long-term issuer credit rating on Saxo to 'A-' from '###'. The outlook is stable. We also assigned our 'A' long-term resolution counterparty rating. Saxo's resolution...

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