Fitch rates Swedbank BBB+

Fitch Ratings said it assigned OAO Swedbank a long-term foreign-currency issuer default rating of BBB+.

The outlook is negative.

The rating reflects the support the bank is likely to receive, in case of need, from majority shareholder, Swedbank AB, rated A with stable view, the agency said.

The ratings are constrained by its high lending concentrations in the real estate sector and individual borrowers, Fitch said, and by its low credit loss absorption capacity in a difficult operating environment.

The ratings also consider the bank's moderate cost base, low market risk and significant level of integration in operations, the agency said.

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