...OVERVIEW + We believe that the Swedish government remains willing and able to provide support to its systemically important banks' senior creditors, despite the implementation of the Bank Recovery and Resolution Directive. + In our view, the Swedish government's tone and actions continue to indicate its intention to avoid a systemic financial crisis by supporting its four largest banks prior to resolution or bail-in of senior unsecured creditors. + However, we believe that the house price appreciation and resurgence in household debt are on an unsustainable path and continue to diverge from fundamentals. + We see heightened economic risk for Swedish banks, which contributes to the negative outlook on six banks, reflecting the possibility that we could revise our view of economic imbalances and/or credit risk in the Swedish economy over the coming two years. + As such, we are raising the rating on Swedbank AB given our expectations of continued government support. The outlook is negative,...
