Danske Bank gets credit rating upgrade

The bad news was that S&P also changed the outlook for the group’s ratings from stable to negative

The Malo Seaways was hit by emergency flares over the weekeend (Photo: DFDS)
May 1st, 2014 2:49 pm| by admin
facebooktwittergoogle_pluspinterestmail

The credit rating agency Standard & Poor (S&P) has upgraded Danske Bank Group’s long-term rating to A from A- and its short-term rating to A-1 from A-2.

"The upgrade is largely due to the closure of the bank's activities in Ireland – which suffered greatly over the past few years – and a decreasing need to depreciate,” S&P wrote in its evaluation.

“It is our 2015 goal to improve out rating by at least one level, and the improved rating by S&P is a good step forward to accomplishing our strategy,” Henrik Ramlau-Hansen, the head of finance at Dansk Bank, said in a press release.

READ MORE: Lego and Danske Bank at opposite ends of reputation ranking

However …
The bad news was that S&P also changed the outlook for the group’s ratings from stable to negative, which basically means that the agency expects to downgrade Danske Bank within the next 18 months.

The negative outlook is down to external events such as new EU regulations that S&P expects to reduce subsidies that Danish banks are given by authorities.

Another credit rating agency, Moody’s, lists Dansk Bank with a Baa1 rating with a positive outlook, while Fitch gives it an A with a stable outlook.

The Malo Seaways was hit by emergency flares over the weekeend (Photo: DFDS)
DFDS hopes to resume Calais service tomorrow
DFDS Seaways services between Dover and Calais remained suspended today aft...
Noma to take a break in Copenhagen in January (Photo: Antissimo)
Noma to close in Copenhagen for ten weeks
Copenhagen’s Noma will shut down for ten weeks next January so the entire...
More and more turbines could be popping up offshore (Photo: Kim Hansen)
More wind farms could be cropping up near the coast
Wind turbines could be popping up along the coastline like, well, wind turb...
It's a Dogg's life (Photo: Jørund Føreland Pedersen)
Rough weekend for the Dogg
US rapper Snoop Dogg's Scandinavian soiree over the weekend was problemati...
It looks barbaric, but the locals call it tradition (Photo: Erik Christensen)
Danish politicians slammed with protests over pilot whale hunt
The traditional grindadráp - the pilot whale hunt - is underway in the Far...
The attempt was eventually abandoned (photo: dinby.dk)
Today’s date: First drilling for oil
The first ever attempt to drill for oil in Denmark took place 80 years ago ...