Important market position in Sweden, with a large customer base and wide distribution network. Low risk profile of domestic operations. High systemic importance in Sweden and high likelihood of government support. Sizable exposure to Baltic economies, which are emerging from a significant correction. Exposure to Ukraine and Russia. Heavy reliance on wholesale funding, including short-term funding. 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 material credit risk involved in the bank's operations in the Baltic countries of Estonia, Latvia, and Lithuania, which are emerging from a significant
