The rating reflects a well-established cooperative franchise, solid asset quality metrics and sound capital and funding positions.

The Outlook revision to Negative reflects Scope’s expectation of rising leverage driven by ambitious capex plans, which could weigh on the issuer’s financial profile amid potential cost pressures.

Class A notes have been fully redeemed.

Scope Ratings has updated its rating report on Skagerrak Sparebank, rated A- with Stable Outlook.

This publication does not constitute a rating action.

State guarantees, strong operational links and high strategic importance underpin the equalisation on Republic of Malta’s ratings. High concentration and rising debt are challenges.

The periodic review has resulted in no rating action.

Government stability, a reinforced commitment to fiscal consolidation, and stronger economic resilience drive the Outlook change. High government debt, weak GDP growth and adverse demographics are challenges.

Sustained fall in public debt ratio, declining external vulnerabilities, alongside robust economic growth, drive the Outlook change. Elevated public debt, moderate growth potential and high external vulnerabilities are challenges.

The rating benefits from the bank’s well established local franchise and continued strong operating performance and comfortable financial viability.