Close relationship and strategic cooperation with Swedbank AB. Adequate core profitability. Sound funding and liquidity profile with loans funded through retail deposits. Geographically concentrated franchise in southern part of Sweden. Large single-name concentration. Limited financial flexibility as capital injections are not allowed under current legal status. The ratings on Sparbanken 1826 reflect its close relationship and strategic cooperation with Swedbank AB (A/Stable/A-1), its adequate core profitability, and its sound funding profile. They are constrained by the bank's geographically limited franchise, its comparatively large single-name concentration, and limited financial flexibility. Capitalization is sound. In our view, the main rating-supportive factors are Sparbanken 1826's close relationship and strategic cooperation with Swedbank. The cooperation is not based on ownership or extended guarantees. However,
