The ratings on FöreningsSparbanken AB (known internationally as Swedbank) reflect the bank's strong franchise in Sweden, supported by strong name recognition, a large customer base, and the widest distribution network in the country. The ratings also reflect the bank's stable asset quality and its relatively satisfactory capitalization levels. The ratings are constrained by the fact that both underlying profitability and growth prospects for the bank continue to remain stagnant, and by the uncertainty resulting from the lack of a coherent international strategy. Swedbank is Sweden's leading retail bank and the country's third-largest bank in terms of assets, with consolidated total assets of Swedish krona (Skr) 1.05 trillion ($142.4 billion at Skr7.4 to $1) at March 31, 2004. The group has
