Nordic Credit Rating upgrades the long-term credit rating for Norwegian Flekkefjord Sparebank to A- from BBB+, according to a press release. The outlook is considered stable.
The upgrade is justified, among other things, by improved asset quality, more diversified funding, strong risk management and expansion into markets with better growth prospects.
The share of net exposure in Stage 3 loans fell to 0.5 percent at the end of the first half from 1.1 percent a year earlier. NCR expects the share of non-performing loans to remain below 1 percent and annual credit losses to average around 9 basis points through 2028.
The short-term rating is also upgraded, to N2 from N3.
