Moody's could cut Norwegian banks

Moody's Investors Service said it placed the issuer and long-term debt ratings of Norwegian regional banks SpareBank 1 Nord-Norge (A1), SpareBank 1 SMN (A1), SpareBank 1 SR-Bank (A1), Sparebanken Hedmark (A1) and Sparebanken More (A2) on review for downgrade.

Moody's said the actions reflect its view that it may become difficult for the banks to maintain their good asset quality going forward. In Moody's opinion, higher home prices and household indebtedness, as well as the increased proportion of high LTV loans on the banks' retail loan books, render them vulnerable to economic downturns.

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