Fitch Ratings on June 11 assigned Svenska Handelsbanken Plc, the U.K.-based wholly owned subsidiary of Svenska Handelsbanken AB (publ), an expected long-term issuer default rating of AA(EXP) with a stable outlook.
The agency also assigned the bank an expected short-term IDR of F1+(EXP) and an expected support rating of 1(EXP).
The expected ratings are equalized with those of the parent, based on Fitch's view of an "extremely high" likelihood of support from Handelsbanken for the unit.
Fitch expects the unit to become functional by end-March 2019 once the U.K. branch operations of the parent are transferred to Handelsbanken Plc. Following the transfer, the expected ratings will be converted into final ratings, the agency noted.
