The ratings on Sweden-based Skandinaviska Enskilda Banken AB (SEB) reflect the group's well-diversified revenue base, underpinned by its very strong franchise in corporate and merchant banking in Sweden, its adequate capitalization, and the group's solid and sustained profitability. The ratings are further supported by SEB's very good asset quality, healthy growth in business volumes as well as tight cost discipline. In Germany, however, SEB is still underperforming relative to group financial targets. Furthermore, the high relative contribution from capital markets-related revenues render the group's profitability vulnerable to a sharp slowdown in the markets. Concentration on single large exposures remains a constraining ratings factor. With assets of Swedish krona (SEK) 1.93 trillion ($280.2 billion at Skr6.90 to $1) at Dec. 31,
