STOCKHOLM (Standard&Poor's) Oct. 3, 2008--Standard&Poor's Ratings Services said today that it lowered its long-term counterparty credit ratings on Sweden-based Swedbank AB to 'A' from 'A+'. Standard&Poor's also said that it affirmed its 'A-1' short-term ratings on the bank. The outlook remains negative. "The downgrade reflects the sharper-than-expected economic slowdown in the Baltic countries and the resulting negative implications for Swedbank's asset quality and earnings," explained Standard&Poor's credit analyst Louise Lundberg. Swedbank has a relatively high reliance on short-term funding in the U.S. and European wholesale markets, which makes the bank relatively vulnerable to refinancing risks. Swedbank is exposed to the sharper-than-expected economic contraction in the Baltic countries. Via Hansabank, its subsidiary, which
