Fitch ups Danske preferred debt, rates deposits A+

Fitch Ratings said it affirmed Danske Bank's and its mortgage bank subsidiary Realkredit Danmark's long-term issuer default ratings at A, short-term issuer default ratings at F1 and viability ratings at a.

The outlooks are stable.

At the same time, the agency upgraded Danske's senior unsecured long-term preferred debt and derivative counterparty rating to A+ from A, and assigned long-term and short-term deposit ratings at A+/F1.

Fitch said the upgrade and assignment of deposit ratings reflects a view that qualifying junior debt and senior non-preferred debt within the group, excluding Realkredit, are sufficient to materially reduce the risk of default for senior preferred creditors in case of failure.

“Danske's ratings reflect the bank's strong universal Danish and to a growing extent, pan-Nordic franchise. This provides stable revenue generation across a wide range of products,” the agency said in a news release.

“The ratings also consider strong capitalisation and strong funding access, although wholesale reliance makes the bank sensitive to a loss of investor confidence.”

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