Moody’s revises Norway to negative

Moody's Investors Service said it changed its outlook on Norway’s banking system to negative from stable.

The outlook change reflects the agency's expectation of a softening operating environment, stemming from reducing oil investments and persistently low oil prices. The outlook expresses Moody's expectation of how bank creditworthiness will evolve in Norway over the next 12 to 18 months.

"We expect declining oil-related investments and negative second-order effects on the Norwegian economy to translate into mild asset quality deterioration, from a very strong current position," Moody’s assistant vice president Niclas Boheman said in a news release.

"We forecast non-performing loans for banks to rise to around 2% by 2017, from 1% in 2015."

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