Since the release of the Group's 2008 annual report on February 5, three credit rating agencies have reduced their assessment of the Danske Bank Group’s counterparty credit risk. Standard & Poor’s and Fitch Ratings came first with their announcements, and now Moody’s falls in, downgrading its rating for the Group’s long-term deposits from Aa1 to Aa3. The Group’s financial strength has been downgraded from B to C.Still in the next-to-top rating category
The latest rating adjustments reflect expectations of increased loan impairment charges owing to the growing number of jobless as well as bankruptcies among the Group’s corporate customers. Despite its rating changes, Moody’s still assigns an AA-rating to Danske Bank, placing us in the next-to-top rating category.Limited impact on funding costs
The three rating agencies’ downgrades will not have any material consequences for the Danske Bank Group's funding costs. The Group participates in the Danish bank and credit packages. The loans issued by the Group are guaranteed by the Danish State which has an AAA credit rating.
Published on February 17, 2009