The ratings on Swedbank AB reflect the bank's important market position in Sweden, which gives it high systemic importance, the low risk profile of its domestic operations and the high likelihood of government support, if needed. The ratings are constrained by the significant risks involved in the bank's operations in the Baltic countries: Estonia, Latvia, and Lithuania, which are currently undergoing a hard landing. The bank's exposure in Ukraine and Russia is also a constraining factor for the ratings as is its heavy reliance on wholesale funding. Swedbank is Sweden's leading retail bank and the country's fourth-largest, with consolidated total assets of Swedish krona (SEK) 1.83 trillion (€167 billion at SEK10.96 to €1) as at March 31, 2009. The group
