More credit rating downgrades, this time Denmark again in focus

Ratings agencies are swinging left and right also aiming at Nordic banks all the more often as. Danske Bank (OMX: DANSKE) was under heaviest pressure in today’s trading after Standard & Poor's downgraded it in the morning by one notch A-/A-2 from A/A-1 on Irish property market weakness and the situation in Denmark. The rating now carries a stable outlook. Danske Bank expressed surprise on the move, given a declining trend in Irish property market related losses as of late.

If the S&P downgrade was, the latest bomb from Moody’s caused outrage. After market close it cut ratings of several Danish and Finnish banks by one to three notches. Danske Bank, Jyske Bank (OMX: JYSK) and Sydbank (OMX: SYDB) were slashed two notches deposit rating Baa1 and Spar Nord Bank (CPH: SPNO) by one notch. Several specialised credit institutions saw their ratings cut by three notches in a single go. In Finland Danske’s subsidiary Sampo Bank to deposit grade A2 and Pohjola Bank (HSE: POH1S) to baa2