Aabenraa, 2012-05-31 08:41 CEST (GLOBE NEWSWIRE) --
Moody’s has lowered its rating of Sydbank by two notches from A2 to Baa1 (long term) and from P-1 to P-2 (short term). Moreover, the Bank’s rating outlook has been changed from negative to stable. The change forms part of the overall change which Moody’s announced earlier this year as regards more than 100 European banks.
According to Moody’s the drivers justifying the change include: difficult market conditions in Denmark with low growth, rising impairment charges and falling profitability. In addition, Moody’s is concerned about the Danish banks’ funding situation.
In its evaluation of Sydbank, Moody’s notes that the problems concerning Sydbank’s loan book are among the smallest of the rated Danish banks and that the Bank’s funding and liquidity situation is comfortable.
It is not expected that the rating action will have a major impact on the Bank’s comfortable funding and liquidity situation. The Bank refinanced its 2012 and 2013 need for long-term funding already in February. In the long term the rating action may lead to rising funding costs.
Yours sincerely
Karen Frøsig Preben L. Hansen
CEO Deputy Group Chief Executive
