Moody's acts on Nordic banks

Moody's Investors Service said it acted on three Nordic banks the following the publication of its revised criteria for rating banks published on Friday.

Moody's boosted the junior senior unsecured debt ratings of Nordea Bank Abp to A3 from Baa1 and the preferred stock ratings on the high trigger AT1 instruments to Baa3(hyb) from Ba1(hyb). The agency also raised Nordea's junior senior unsecured debt ratings of A3 by one notch and are now rated in line with the baseline credit assessment.

Nordea's preferred stock ratings on its high trigger AT1 instruments were upgraded to Baa3(hyb) from Ba1(hyb). The Baa3(hyb) rating, positioned three notches under the bank's adjusted BCA, reflects the high loss-given-failure for the AT1 securities issued by Nordea and the securities' coupon skip mechanism and write-down features, which reduce the rating by an added two notches, Moody’s said.

The agency raised OP Corporate Bank plc's junior senior unsecured ratings by one notch to A3 from Baa1 and affirmed the long-term senior unsecured debt- and issuer ratings at Aa3.

Finally, Moody’s affirmed Spar Nord Bank A/S’ subordinated medium-term note program at (P)Baa2.

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