Moody's on Oct. 11 raised Sparebanken Hedmark's long-term local- andforeign-currency bank deposits and issuer ratings to A1 from A2. The outlook onthe long-term ratings is stable.
Moody's also upgraded the bank's baseline credit assessmentto "baa1" from "baa2" and the long-term counterparty riskassessment to Aa3(cr) from A1(cr).
The rating agency affirmed the bank's P-1 short-term local-and foreign-currency bank deposits ratings, "baa1" adjusted baselinecredit assessment and P-1(cr) short-term counterparty risk assessment.
The ratings action follows the consolidation of theacquired intoSparebanken Hedmark's financial statements of June 2016 and the resultingincreased importance of the group within the Norwegian financial system.
The upgrade of the bank's long-term bank deposits and issuerratings reflects moderate government support that Moody's now incorporates intothe ratings. The upgrade of the bank's baseline credit assessment reflects theagency's view that the acquisition of Bank 1 Oslo Akershusbenefits the bank's standalone credit profile.