Fitch lifts Danske Bank view to stable

Fitch Ratings said it affirmed Danske Bank's long-term issuer default rating at A, viability rating at A and short-term issuer default rating at F1.

The outlook was revised to stable from negative.

Danske Bank

The bank's long-term senior debt also was affirmed at A, short-term senior debt at F1, guaranteed senior debt at AAA, subordinated notes at BBB and tier 1 instruments at BBB-.

The outlook revision reflects the reduced downside risk from Ireland to an easily manageable level in the context of the Danske group, Fitch said.

The bank is expected to withstand a further moderate deterioration in Denmark, which is considered possible, but not expected in the ratings base-case scenario, the agency said.

Its strong Danish and Nordic franchise, solid capitalization and relatively diversified earnings drive the ratings, Fitch added.

The ratings also consider still challenging economic conditions in Denmark and high loan impairment charges, the agency said.

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