The ratings on Swedbank (ForeningsSparbanken AB) reflect the bank's strong retail customer franchise in Sweden, its stable asset quality, and satisfactory capitalization. The ratings also reflect the call-off of the proposed merger between Swedbank and Skandinaviska Enskilda Banken AB (SEB; A-/Stable/A-2). The two banking groups based their decision on the concessions demanded by the EC, which would not allow the expected cost savings at the strategic core of the merger to be gained. Swedbank's management has stated that the bank's strategy as a leading retail leading bank in Sweden, pursuing further expansion in the Baltic area, will remain the same as before the merger conversations began. Swedbank is the third-largest bank in Sweden and the fifth-largest banking group in the
