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Moody's assigns A1/P-1/C ratings to Spar Nord Bank A/S (Denmark): First-time ratings.

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M2 PRESSWIRE-6 August 2007-Moody's Investors Service: Moody's assigns A1/P-1/C ratings to Spar Nord Bank A/S (Denmark): First-time ratings(C)1994-2007 M2 COMMUNICATIONS LTD

RDATE:06082007

London -- Moody's Investors Service has today assigned a C bank financial strength rating ("BFSR") to the Danish regional bank Spar Nord Bank A/S as well as long-term and short-term local currency and foreign currency deposit ratings of A1/Prime-1. The outlook on all ratings is stable.

Spar Nord Bank's C BFSR -- which maps to a Baseline Credit Assessment ("BCA") of A3 under Moody's joint default analysis ("JDA") methodology -- reflects the bank's strong local franchise, good national coverage, robust financial fundamentals and conservative strategy. The rating also incorporates possible future challenges arising from the intense competition in the Danish banking market and funding pressures as savings disintermediation advances.

In light of Spar Nord Bank's importance to its local market and its national coverage, Moody's considers the probability of systemic support for the bank in the event of a stress situation to be moderate. The bank's A1 local currency deposit rating is therefore supported not only by its A3 BCA, but also by the...

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