The ratings on Skandinaviska Enskilda Banken AB (SEB) reflect the group's diversified earnings profile, satisfactory capitalization, and sound asset quality. The rating is constrained by a challenging and capital-consuming growth strategy, and volatile capital markets revenue streams. SEB ranks as the third-largest financial services group in the Nordic region, and has its most important operations in Sweden, Germany, and is also growing rapidly in the Baltic region. The group holds particularly strong market positions in large corporate banking, foreign exchange trading, asset management, and private banking. The group's Baltic operations are of increasing importance to group performance. Total revenue in the Baltic operation was Swedish krona (Skr) 2.1 billion, or 7% of the group total in 2001. Total assets for
