Swedish Bank SEB's Improved Capital Leads To Upgrade Of Hybrid Instruments; SEB Affirmed At 'A+/A-1'; Outlook Stable

In 2015, Skandinaviska Enskilda Banken AB's (SEB's) capital improvements enhanced the bank's resilience to increasing economic risks in Sweden, as indicated by the improvement in its risk-adjusted capital ratio to about 10.2% at end-2015 from 9.1% in 2014. As such, we are revising up our assessment of the bank's stand-alone credit profile (SACP) to 'a' from 'a-'. We are raising our issue ratings on SEB's subordinated debt to 'BBB+' from 'BBB' and on its junior subordinated debt to 'BBB-' from 'BB+'. We continue to view the Swedish government as supportive of senior unsecured debt issued by its four systemically important banks, including SEB. Therefore, we are affirming our ratings on SEB at 'A+/A-1'. The stable outlook balances our view of

...+ In 2015, Skandinaviska Enskilda Banken AB's (SEB's) capital improvements enhanced the bank's resilience to increasing economic risks in Sweden, as indicated by the improvement in its risk-adjusted capital ratio to about 10.2% at end-2015 from 9.1% in 2014. + As such, we are revising up our assessment of the bank's stand-alone credit profile (SACP) to 'a' from 'a-'. + We are raising our issue ratings on SEB's subordinated debt to '###+' from '###' and on its junior subordinated debt to '###-' from '##+'. + We continue to view the Swedish government as supportive of senior unsecured debt issued by its four systemically important banks, including SEB. + Therefore, we are affirming our ratings on SEB at 'A+/A-1'. + The stable outlook balances our view of increasing economic risks in Sweden, which could weaken SEB's creditworthiness, with SEB's improved capital position and the likelihood of SEB receiving government support if needed. STOCKHOLM (S&P Global Ratings) June 1, 2016--S&P Global...

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