Sparbanken Skane AB (publ)

The stable outlook on Sparbanken Skåne reflects our expectation that the bank will continue its relationship with Swedbank and keep its leading position in its local market. We believe Sparbanken Skåne will maintain a sound financial position underpinned by robust capitalization, despite possible pressure on asset quality and earnings over the next two years. We anticipate Sparbanken Skåne will continue building and maintaining a considerable ALAC buffer in the coming years as it fulfils its MREL, and that the ALAC buffer will durably exceed our adjusted threshold of 4% of RWAs. We could take a negative rating action if we observed changes in the bank's risk appetite or operating conditions that might materially weaken asset quality, or if the RAC

...Sparbanken Sksne (publ)'s partnership with Swedbank will continue to support its strong standing in the home region. S&P Global Ratings expects Sparbanken Sksne to maintain its leading position in the Sksne region in Southern Sweden. The bank has actively lent to the area for decades but holds only a modest market share of 1% nationally. Due to historical ties and the bank's limited size, Swedbank provides support by equipping the bank with products, information technology (IT), and short-term liquidity, if needed. We believe this long-term partnership will continue since it supports overall revenue capacity and efficiency gains....

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