Biggest Nordic Banks Cut by Moody’s on Market Funding Risks

Some of the Nordic region’s largest banks, among the best rated in Europe, were downgraded by Moody’s Investors Service on concern that a reliance on wholesale funding has left them vulnerable to market volatility.

Sweden’s Nordea Bank AB and Svenska Handelsbanken AB were cut by one level to Aa3 and Norway’s DNB Bank ASA was lowered to A1, Moody’s said in separate statements. Credit grades of SEB AB and Swedbank AB were affirmed while Landshypotek AB was cut two steps to Baa2. All ratings carry stable outlooks, Moody’s said.