Retail banking market leader in Sweden, with a large customer base and wide distribution network. Strong risk-adjusted capital levels, reflecting the low risk profile of domestic operations. Strong earnings capacity. Sluggish loan growth in Baltic markets. Reliance on wholesale funding, increasing confidence sensitivity. Standard&Poor's Ratings Services outlook on Sweden-based Swedbank AB is negative, indicating that we could lower the ratings by year-end 2015 if we believe there is a greater likelihood that senior unsecured creditors could incur losses if the bank fails. Despite recent improvement in the bank's stand-alone credit profile (SACP), we could lower the long-term counterparty credit rating by one notch if we consider that extraordinary government support is less predictable under the new EU legislative
