The ratings on Swedbank AB reflect the bank's strong franchise in Sweden, supported by a large customer base, the widest distribution network in the country, and its leading position in the high-growth Baltic economies. The ratings also reflect the bank's consistently high asset quality but are constrained by the high sensitivity of net interest income to low interest rates and margin competition, which limits revenue growth potential. The ratings factor in the risks involved in the bank's important exposure to the three Baltic countries (Estonia, Latvia, and Lithuania), which are experiencing evident signs of overheating that could translate into higher credit losses. Swedbank is Sweden's leading retail bank and the country's fourth-largest, with consolidated total assets of Swedish krona (SEK)
