trending Market Intelligence /marketintelligence/en/news-insights/trending/OknZXh3graXMJ0hG3V8SNg2 content esgSubNav
In This List

Moody's acts on Sparebanken Hedmark

Blog

Managed Services Insights: The client lifecycle management solution

Blog

Technology & Automation Insights: Elevating KYC and onboarding efficiency

Blog

Banking Essentials Newsletter: May 15th Edition

Blog

Data Insights: Enhancing regulatory compliance and client lifecycle management.


Moody's acts on Sparebanken Hedmark

Moody's on April 28 assigned an A2 long-termissuer rating, with a stable outlook, following regulatory approval for thelender's acquisitionof Bank 1 Oslo AkershusAS.

The bank's A2/P-1 deposit ratings, "baa1" adjustedbaseline credit assessment and A1(cr)/P-1(cr) counterparty risk assessmentswere affirmed.

The agency also put on review for upgrade SparebankenHedmark's "baa2" baseline credit assessment, reflecting its view thatthe acquisition could bring benefits including asset quality and fundingprofile improvements, a deeper geographical and earnings diversification andopportunities for further growth of the lender's customer base.

Although the deal is likely to place some downward pressureon the bank's capital and profitability metrics over the medium term, Moody'ssaid it expects the combined group to maintain "relatively strongfinancial metrics." Moody's expects the merged entity's common equity Tier1 ratio to be around 15.3%, compared to the 17.2% CET1 ratio for SparebankenHedmark alone as of December 2015.