The ratings on Swedish banking group Skandinaviska Enskilda Banken AB (SEB) reflects Standard&Poor's Ratings Services' view of SEB's well-diversified revenue base across Sweden, Germany, and the Nordic and Baltic regions; established franchise in core business areas, particularly corporate and merchant banking; stable earnings from Nordic retail and merchant banking business; diverse funding sources; and strengthened liquidity. Our concerns about the asset quality of SEB's Baltic exposures have diminished and we believe that the Nordic and German portfolios will benefit from increased corporate lending volumes and higher interest rates during 2011 and 2012. The main constraints to the ratings are SEB's higher dependence on capital-market-related revenues than its Scandinavian peers; large exposures to single names, given the relationship and
