The ratings on Sweden-based Skandinaviska Enskilda Banken AB (SEB) reflect the group's well-diversified revenue base, underpinned by its strong franchise in corporate and merchant banking in Sweden. The ratings also reflect the group's sustained revenue generation and tight cost discipline. Capitalization was significantly enhanced by a Swedish krona (SEK) 15 billion rights issue announced in February 2009. However, in 2009, asset quality deteriorated sharply in the Baltic countries where the bank operates, although it has remained relatively resilient elsewhere in the group. In addition to the strain on asset quality, the group's profitability is highly dependent on capital-market-related revenues. Large single-name exposures remain a rating constraint in Standard&Poor's Ratings Services' view. With assets of SEK2.31 trillion (€225 billion
