Retail banking market leader in Sweden, with a large customer base and wide distribution network. Low risk profile of domestic operations. Improved funding composition and duration improving liquidity risk metrics. Sluggish credit recoveries in Baltic markets. Reliance on wholesale funding increases confidence sensitivity. Standard&Poor's bases the ratings on Swedbank on its 'a-' anchor. In our view, it has an "adequate" business position, given its market-leading retail position and prudent management and strategy. We assess its capital and earnings as "adequate," given the existing ratios and projected capital generation, which we expect will lead to a risk-adjusted capital (RAC) ratio before diversification of around 9.5% in 18-24 months. Its "adequate" risk position is based on the bank's representative risk
