The ratings on FöreningsSparbanken AB (known internationally as Swedbank) 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 are also constrained by the bank's cost efficiency, which continues to lag that of some of its peers, and the temporarily weakened capitalization following the acquisition of Hansabank in 2005. Swedbank is Sweden's leading retail bank and the country's fourth-largest, with consolidated total assets of Swedish krona
