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Fitch Withdraws Nordea Subsidiaries' Ratings on Group Merger
January 3, 2017 / 4:53 PM / a year ago

Fitch Withdraws Nordea Subsidiaries' Ratings on Group Merger

(The following statement was released by the rating agency) LONDON, January 03 (Fitch) Fitch Ratings has withdrawn the ratings of Nordea Bank Finland Plc, Nordea Bank Danmark and Nordea Bank Norge. These entities were previously the main operating subsidiaries of Nordea Bank AB, the Nordea group's parent company, in the respective Nordic countries, but were merged into Nordea Bank AB on 2 January 2017. Fitch is withdrawing the ratings as the entities no longer exist. Accordingly, Fitch will no longer provide ratings or analytical coverage for these entities. The EUR50m senior unsecured notes issued by Nordea Bank Finland Plc (FI4000020508) were transferred to Nordea Bank AB as part of the group merger and have been affirmed at 'AA-'. The ratings of Nordea Bank AB (AA-/Stable/F1+/aa-) and its outstanding rated debt are unaffected by this rating action. KEY RATING DRIVERS The Nordea group previously operated four legal entities across the Nordic region, with Swedish Nordea Bank AB operating as the parent bank. Each was subject to local supervision, with the group being regulated on a consolidated basis by the Swedish authorities. Given the highly integrated operations, Fitch assigned common Viability Ratings to the group entities, despite the entities being cross-border. Nordea announced in 2016 its intention to merge these subsidiaries into its Swedish parent in 2017 and operate out of branches. On 21 December 2016 the bank received final approval from the Danish and Norwegian regulators to proceed with this merger (the Finnish regulator had approved at an earlier stage). Nordea continues to operate in Denmark, Finland and Norway through branches of the parent company, effective from 2 January 2017. SENIOR DEBT RATING (FI4000020508) The EUR50m senior unsecured debt transferred to Nordea Bank AB is rated in line with the 'AA-' Long-Term IDR of Nordea Bank AB, reflecting average recovery prospects. RATING SENSITIVITIES SENIOR DEBT RATING (FI4000020508) The rating of the EUR50m senior unsecured debt transferred to Nordea Bank AB is sensitive to a change in the Long-Term IDR of Nordea Bank AB The rating actions are as follows: Nordea Bank Finland Plc Long-Term IDR 'of AA-' with Stable Outlook withdrawn Short-Term IDR of 'F1+' withdrawn Viability Rating of 'aa-' withdrawn Support Rating of '5' withdrawn Support Rating Floor of 'No Floor' withdrawn Nordea Bank Danmark Long-Term IDR of 'AA-' with Stable Outlook withdrawn Short-Term IDR of 'F1+' withdrawn Viability Rating of 'aa-' withdrawn Support Rating of '5' withdrawn Support Rating Floor of 'No Floor withdrawn Nordea Bank Norge Long-Term IDR of 'AA-' with Stable Outlook withdrawn Short-Term IDR of 'F1+' withdrawn Viability Rating of 'aa-' withdrawn Support Rating of '2' withdrawn Support Rating Floor of 'BBB-' withdrawn Nordea Bank AB Senior unsecured debt (FI4000020508) affirmed at 'AA-' Contact: Primary Analyst Bjorn Norrman Senior Director +44 20 3530 1330 Fitch Rating Limited 30 North Colonnade London E14 5GN Secondary Analyst Olivia Perney Guillot Senior Director +33 1 44 299 174 Committee Chairperson Francesca Vasciminno Senior Director +39 02879087225 Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153, Email: Additional information is available on Applicable Criteria Global Bank Rating Criteria (pub. 25 Nov 2016) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here _id=1017163 Solicitation Status here Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. 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