Sparbanken Rekarne Tier 2 capital instrument assigned 'BBB+' issue rating
Prenumeration
Nordic Credit Rating said today that it has assigned a 'BBB+' issue rating to a Tier 2 debt instrument to be issued by Sweden-based Sparbanken Rekarne AB (publ) (Sparbanken Rekarne).
Rationale
The rating reflects the bank's plan to issue a Tier 2 capital instrument of SEK 120m. The instrument is rated one notch below our issuer rating on the bank, according to our methodology for rating debt instruments of financial institutions. Notching from the issuer rating indicates our belief that Swedbank AB, which owns 50% of the bank, would provide material support before allowing the capital instruments of the bank to be written down.
The new instrument has no impact on our assessment of the bank's capital position, and the 'A-' long-term issuer rating on Sparbanken Rekarne remains unchanged.
| Rating list | To | From |
| Long-term issuer credit rating: | A- | A- |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N-1+ | N-1+ |
| Senior unsecured issue rating: | A- | A- |
| Tier 2 issue rating: | BBB+ | None |
If you have any questions, please contact:
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
Geir Kristiansen, credit rating analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
The methodology documents used for this rating are NCR's Financial Institutions Rating Methodology published on 14 Aug. 2018 and NCR's Rating Principles published on 16 Sep. 2019. For the full regulatory disclaimer please see the rating report.