S&P Global Ratings on March 29 revised its outlook on Svenska Handelsbanken AB (publ) to stable from negative.
The rating agency also affirmed the bank's AA- long-term and A-1+ short-term counterparty credit ratings.
The rating agency believes that the bank's capitalization is significantly stronger, making it more resilient if economic risks in its core markets were to worsen.
In response to the Swedish Financial Supervisory Authority's increased regulatory requirements, Svenska Handelsbanken lowered the total proposed dividend for 2016, converted employee-held subordinated instruments, sold various equity positions, and maintained stable earnings, which led to an improved risk-adjusted capital ratio of 10.4% at the end of 2016, marking a 110-bps increase from end of 2015.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.