Skandinaviska Enskilda Banken AB (publ)

Well-diversified revenue base by geography and business area. Entrenched large Nordic corporate and institutions business as a core business area. Stable earnings from Swedish retail and large corporate banking business. Concentration of comparably large single-name exposures. Improving, but still relatively lower cost efficiency compared with domestic peers. Standard&Poor's Ratings Services' negative outlook on Sweden-based Skandinaviska Enskilda Banken AB (publ) (SEB) is driven by the view that uplift from potential extraordinary government support for European banks is less predictable under the new EU legislative framework. The negative outlook indicates that we could lower our long-term counterparty credit rating on SEB by one notch by year-end 2015 if we believe there is a greater likelihood that senior unsecured creditors could

...Standard & Poor's Ratings Services' negative outlook on Sweden-based Skandinaviska Enskilda Banken AB (publ) (SEB) is driven by the view that uplift from potential extraordinary government support for European banks is less predictable under the new EU legislative framework. The negative outlook indicates that we could lower our long-term counterparty credit rating on SEB by one notch by year-end 2015 if we believe there is a greater likelihood that senior unsecured creditors could incur losses if the bank fails. Despite the possible one-notch reduction, we assume that SEB will nevertheless continue to improve its efficiency and earnings metrics and generate further capital over the coming 18-24 months, which would lead to us to revise up the capital assessment by one notch. Alternatively, we believe that SEB is likely to increase its additional loss-absorbing capacity, providing protection to senior debt holders, because we would assess the upcoming resolution regime as effective. We could...

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