International rating agency Fitch Ratings has bestowed long-term issuer default rating (IDR) of BBB+ on Danske Bank, with a negative outlook, and support rating (2), the agency said in a press release. Also the agency gave other ratings to the lender. They are as follows: short-term IDR (F2) and national scale long-term rating (AAA(rus), with a stable outlook.
The long-term IDR reflects likelihood of the bank gaining support, if required, from its sole shareholder, Danske Bank (A+/stable). The long-term rating is constrained by the Russian Federation’s country ceiling (BBB+) and will be downgraded if the sovereign rating is lowered.
The financial institution operates in Russia as part of Danske Bank, under the same brand and is to a large extent integrated into the parent company’s business processes, including with regard to balance sheet and risk management. Accepted risks are approved by Danske Bank and risks are primarily covered by the parent bank.
Danske Bank, based in Saint Petersburg, is a midsized bank (even under Russian standards), whose assets totaled $121 mln as of April 1, 2009. The lender’s operations are mainly limited to providing settlement services to corporate clients from the Scandinavian region. Danske Bank is wholly owned by Danske Bank, a leading Danish lending institution.
