S&P lifts Storebrand Bank view to stable

S&P said it revised the outlook on Storebrand Bank ASA to stable from negative.

The agency also said it affirmed the BBB+ long-term and A-2 short-term counterparty credit ratings the bank.

The outlook revision reflects a view that Storebrand Bank's group status is now considered “core” versus “highly strategic” previously, given the bank's progress in integrating itself within Storebrand ASA's existing strategy and customer base, S&P said.

The agency said it now believes the group will provide support to the bank, if necessary.

This offsets the growing economic risks that are building in the Norwegian banking sector, S&P said.

Private sector credit imbalances have increased due to domestic competition for market share in Norwegian mortgages and depressed oil prices, the agency said.

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