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. Constraining the ratings is the fact that both profitability and growth prospects for the bank continue to remain stagnant, and even negatively affected by the loss-making associated company in Norway and certain extraordinary items. 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) 1.01 trillion ($126.3 billion at Skr8 to $1) at March 31, 2003. The group has
