Moody’s takes actions on Norwegian banks
Global rating agency Moody’s today taken actions on four Norwegian regional banks that are members of the SpareBank 1 Alliance: SpareBank 1 SR-Bank ASA, SpareBank 1 SMN, SpareBank 1 Nord-Norge and Sparebanken Hedmark. The rating actions conclude the review for downgrade originally initiated in March 2012.
Moody’s confirmed the A2 long-term senior debt and deposit ratings and Prime-1 short-term ratings of SpareBank 1 SMN and SpareBank 1 SRBank ASA. The outlook on both banks’ ratings are now stable.
At the same time, Moody’s downgraded SpareBank 1 NordNorge’s long-term senior debt and deposit ratings to A2 from A1 with a stable outlook and affirmed its Prime-1 short-term ratings. The deposit ratings of Sparebanken Hedmark were also downgraded to A2 from A1, but are on review for further downgrade; its Prime-1 short-term deposit ratings were consequently placed under review for downgrade. The downgrades of the two bank’s long-term ratings reflects the reduction in the availability of mutual support within the Alliance, in Moody’s view. The review for downgrade on Sparebanken Hedmark’s deposit ratings .