The ratings on Sweden-based Skandinaviska Enskilda Banken AB (SEB) reflect the successful defense of the group's core franchise in corporate banking, as well as the group's heightened attention to risk-adjusted earnings. Moreover, the retail business in Sweden is developing strongly and is contributing positively to group performance, along with asset management and Eastern European banking. All of this, together with tight cost discipline, has resulted in improving performance, despite still-sluggish market conditions. In Germany, SEB is still underperforming relative to group financial targets, and Standard&Poor's views this as a constraint for the ratings. SEB ranks as the third-largest financial services group in the Nordic region. Its most important operations are in Sweden and Germany, and the group is
