Weekly Credit update - Microsoft · 4 Weekly purchase volumes Purchased issues, split by country of...

Weekly Credit Update

16 August 2016

Important disclosures and certifications are contained from page 34 of this report

Investment Researchwww.danskebank.com/CI

This document is intended for institutional investors and is not subject to all the independence and disclosure standards applicable to debt research reports prepared for retail investors.

Analyst

Katrine Jensen+45 45 12 80 [email protected]

22

- General credit market news and current themes

- Credit indicators

- Scandi investment grade

Contents

- Coverage universe, credit ratings and recommendations

- Scandi high yield

33Source: Bloomberg, Danske Bank Markets (both charts)

What’s on our minds

- General credit market news

• Spreads have tightened significantly over the summer with the lows of iTraxx Main and iTraxx Crossover last week being 34bp and 113bp lower, respectively, than the highs that followed market uncertainty post-Brexit. This is partly due to an improved sentiment also evident in lower volatility with the VIX index during last week closing at its lowest level since July 2014. However, the main contributor is the CSPP, which has resulted in a technical tightening evident in the larger percentage tightening in the iTraxx Main versus Crossover.

• As usual, activity in the primary market slowed down during the summer and we saw only a few new issues in the Nordic market. Looking beyond the Nordic market, we saw multibillion EUR deals from large American banks such as Wells Fargo, JP Morgan, Goldman Sachs and Bank of America.

• In our view, the CSPP will offset potential spread widening from the pick-up in new issue activity that is set to follow as the holiday season comes to an end.

• The European Banking Authority published the results of its stress test on 29 July. The results were largely as expected and have been a non-event for the Nordic banks. However, taking a closer look at the data, we have difficulty seeing the European banking sector being very supportive for the economy in the coming years . For more see our research The EBA's stress test confirms Nordic Strength, 1 August, and Armchair thoughts on the outcome of the EBA stress test, 15 August.

http://danskeanalyse.danskebank.dk/abo/CreditUpdateNordicstrength010816/$file/CreditUpdate_Nordic_strength_010816.pdf

http://danskeanalyse.danskebank.dk/abo/CreditUpdateEUBanks150816/$file/CreditUpdate_EUBanks_150816.pdf

44

Weekly purchase volumes Purchased issues, split by country of risk

Source: ECB, Danske Bank Markets Source: ECB, Danske Bank Markets

CSPP UpdatePurchases of EUR1.25bn in the week ending 12 August

Buy NOKIA 2019 USD, trading at wide margin to Nokia 2019 EUR

Published on 23 May 2016

• The summer lull hit the ECB’s CSPP purchases, with the lowest weekly purchase volume so far.

• In total, the ECB has now purchased bonds under the CSPP totallingEUR16.2bn.

• In relation to total purchased volume, the average holding of each ISIN (dividing the total purchased amount by the number of ISINs held) has gone up slightly. It seems the central banks initially purchased a largenumber of small stakes in various ISINs, but have ramped up holdingsof individual ISINs in the past weeks.

• In terms of the split of purchases so far, bonds from German issuers represent a much larger share of purchased issues than the ECB’s benchmark would imply, based on outstanding market volumes.

• No purchases of Sweden-, Denmark- or Norway-based companieshave so far been seen. Although bonds issued by eurozone subsidiariesof non-eurozone Swiss, British and US companies have been bought.

• Over time, the purchases should reflect the market benchmark.

0

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Weekly purchase volume Volume held per ISIN

AT BE

DE

EE

ES

FIFR

IE

IT

LU

NL

PTSISKGBUS CH

5

Scandi high yield

66

Relative value (EUR), indicative mid spreads (Chart 1) Credit spread development (Chart 2)

Source: Bloomberg, Danske Bank Markets Source: Bloomberg, Danske Bank Markets

Buy NOKIA 2019 USD, trading at wide margin to Nokia 2019 EURPublished on 23 May 2016


0

50

100

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300

May-2015

Jun-2015

Jul-2015

Aug-2015

Sep-2015

Oct-2015

Nov-2015

Dec-2015

Jan-2016

Feb-2016

Mar-2016

Apr-2016

ASW Issue Currency

NOKIA USD 5.375% 2019 NOKIA EUR 6.75% 2019

NOKIA (Ba2/BB+) 6.75% '19 (EUR) (bid)

NOKIA (Ba2/BB+)

5.375% '19 (USD) (ask)

ERICB (Baa1/BBB+) 4.125% '22 (USD) (mid)

Industrials BBB

Industrials BBB+

Industrials BBB-

60

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100

120

140

160

180

200

1 2 3 4 5 6 7 8 9 10 11 12

Spread (EUR)*

YTW**

* Z-spreads. Discount margin for floaters. Swapped to indicated currency. ** Years-to-worstNote: Fair value curve(s) based on Danske Bank Markets' (mid) peer group of European issuers


Key arguments for the trade

• Large spread to the ‘BBB-’ industrial curve and EUR bonds. The USD-denominated NOKIA 2019s are trading at a good pick-up relative to both the EUR-denominated NOKIA 2019s as well as the ‘BBB-’ industrials curve.

• The indicative spread between the USD- and EUR- denominated Nokia 2019s is c.20 basis points for a three-month maturity extension when adjusting for both bid-ask and cross currency (see Chart 1).

• History suggests that the spread differential between the two bonds will tighten over time (see Chart 2).

• Potential further upside from IG status. Nokia is likely to be investment grade over the medium term. S&P recently affirmed the positive outlook on Nokia’s ‘BB+’ rating stating potential for an upgrade to ‘BBB-’ within 6-12 months, barring a successful integration with Alcatel and performance in line with peers. So far, both criteria have been met and Nokia recently upgraded its expectation for synergies arising from the ALU merger.

• See Credit Update: Nokia – Decent margins but outlook still soft, 11 May 2016.

• See Trade idea: Buy Nokia USD 5.375% 2019 outright or fund by

selling Nokia EUR 6.75% 2019, 23 May 2016

http://danskeanalyse.danskebank.dk/abo/CreditUpdateNokiaQ116110516/$file/CreditUpdate_Nokia_Q116_110516.pdf

http://danskeanalyse.danskebank.dk/abo/NokiaTradeIdea230516/$file/Nokia_Trade_Idea_230516.pdf

77

Recent trade ideas (high yield)

Source: Danske Bank Markets

See the end of this document for a list of our coverage including shadow ratings and recommendations.

Type Trade Idea

Opened 23 May 2016

Opened 23 May 2016

Opened 14 Mar 2016

Opened 07 Mar 2016

Opened 17 Feb 2016

Opened 14 Jan 2016

Opened 13 Jan 2016

Opened 07 Dec 2015

Outright Buy SSAB EUR2019 The SSAB EUR2019 currently trades at very attractive levels compared to other outstanding SSAB bonds and compared to the current BB- rating from S&P

Outright Buy Norwegian Air Shuttle

EUR2019

The Norwegian Air Shuttle EUR2019 currently trades at very attractive levels compared to other outstanding NAS bonds and compared to our B+/NO shadow rating.

Outright Buy Tallink NOK 2018 FRN Trading at an attractive spread following recent widening

Outright Buy Stena EUR2017 Attractive valuation 2017 bond. We remain underweight all other Stena bonds

Outright Sell Stena 6.125% 2017 (EUR) Valuation no longer attractive after strong performance

Outright Buy Nynas FRN 2018 (SEK) Current metrics position Nynas' shadow rating closer to BB- than B+, making the 18's look very cheap relative to the B+ fair value curve

Outright Buy Nokia USD 5.375% 2019 The USD denominated NOKIA 2019’s trade with a good pickup relative to both the EUR denominated NOKIA 2019’s as well as the ‘BBB-’ industrials curve

Switch Buy Nokia USD 5.375% 2019

outright and fund by selling Nokia

EUR 6.75% 2019

The USD denominated NOKIA 2019’s trade with a good pickup relative to both the EUR denominated NOKIA 2019’s as well as the ‘BBB-’ industrials curve

88

Best and worst performers (Nordic coverage universe)- High yield

Source: Bloomberg, Danske Bank Markets (both charts)

1 month in local currencies YTD in local currencies

32,834

12,701

7,213

5,423

3,977

3,673

3,345

3,102

2,978

2,723

-115

-132

-135

-152

-153

-173

-177

-193

-260

-436

-50005000150002500035000

Prosafe SE NOK 2017

Farstad Shipping ASA NOK 2017

Olympic Ship AS NOK 2017

Prosafe SE NOK 2018

Seadrill Ltd NOK 2018

Prosafe SE NOK 2019

Prosafe SE NOK 2020


Golden Close Maritime Corp Ltd USD…


Nynas AB SEK 2018

Norwegian Air Shuttle ASA NOK 2017

SSAB AB SEK 2019

Meda AB SEK 2018

Meda AB SEK 2019

Outokumpu OYJ EUR 2019

Hoist Kredit AB EUR 2017

SSAB AB EUR 2019

Odfjell SE NOK 2017

Teekay Offshore Partners LP/Teekay…

Change in local currencies (bp)

2,451

2,179

1,883

978

702

529

304

285

223

119

-100

-100

-196

-224

-393

-480

-1,229

-1,357

-1,665

-3,588

-4000-3000-2000-10000100020003000




Seadrill Ltd NOK 2018

North Atlantic Drilling Ltd NOK 2018

Beerenberg Holdco II AS NOK 2018

Fred Olsen Energy ASA NOK 2019

Seadrill Ltd SEK 2019

Solstad Offshore ASA NOK 2019

BW Offshore Ltd NOK 2020

Norwegian Air Shuttle ASA NOK 2017

J Lauritzen A/S NOK 2017


SAS AB SEK 2017

North Atlantic Drilling Ltd USD 2019

Golden Close Maritime Corp Ltd USD…

Prosafe SE NOK 2019

Prosafe SE NOK 2020

Prosafe SE NOK 2018

Prosafe SE NOK 2017


99

Recent Nordic high-yield issuance*

Source: Bloomberg, Danske Bank Markets

*Excluding increases in existing bond issues (taps)

Selected new issues (High Yield)

Date Issuer Coupon CCY Volume Maturity S&P / Mdy / Fitch ASW/DM

21/07/2016 Dof Asa (Convertible) 0% NOK 1 033 m Jul/21 / / -

23/06/2016 Ml 33 Holding As 5.5% NOK 682 m Dec/21 / / -

22/06/2016 Tobin Properties Ab STIB3M +900bps SEK 225 m Jul/19 / / 900

16/06/2016 Kungsleden Ab STIB3M +350bps SEK 600 m Jun/19 / / 350

16/06/2016 Scan Bidco As 6.8% DKK 200 m Jun/22 / / est. 642

14/06/2016 Gaslog Ltd NIBOR3M +690bps NOK 750 m May/21 / / 690

13/06/2016 Klarna Ab STIB3M +450bps SEK 300 m Jun/26 / / 450

10/06/2016 Pioneer Public Propertie NIBOR3M +525bps NOK 1 000 m May/21 / / 525

10/06/2016 Color Group Asa NIBOR3M +475bps NOK 500 m Dec/20 / / 475

09/06/2016 Victoria Park Ab STIB3M +450bps SEK 600 m Jun/20 / / 450

09/06/2016 Outokumpu Oyj 7.25% EUR 250 m Jun/21 / B2 / 740

08/06/2016 Norcell Sweden Holding 3 3.625% SEK 1 750 m Jun/21 BB / Ba3 / 350

07/06/2016 Stora Enso Oyj 2.125% EUR 300 m Jun/23 BB / Ba2 / WD 200

30/05/2016 Sodra Skogsagarna STIB3M +160bps SEK 1 000 m Jun/21 / / 160

25/05/2016 Klovern Ab STIB3M +415bps SEK 750 m Jun/20 / / 415

25/05/2016 Hoist Kredit Ab 3.125% EUR 250 m Dec/19 / Ba1 / 322

20/05/2016 Stromma Turism & Sjofart STIB3M +590bps SEK 300 m May/21 / / 590

19/05/2016 Sanoma Oyj 3.5% EUR 200 m Nov/19 / / 399

19/05/2016 Opus Group Ab STIB3M +475bps SEK 500 m May/21 / / 475

17/05/2016 Aspo Oyj (Hybrid) 6.75% EUR 25 m PERP / / 500

11/05/2016 Corem Property Grp Ab STIB3M +475bps SEK 300 m Nov/19 / / 475

11/05/2016 Volvo Car Ab 3.25% EUR 500 m May/21 BB / Ba3 / 363

10/05/2016 Sbab Bank Ab (AT1) 5.052% SEK 775 m PERP BB+ / Ba2 / 475

10/05/2016 Sbab Bank Ab (AT1) STIB3M +475bps SEK 725 m PERP BB+ / Ba2 / 475

29/04/2016 Ssm Holding Ab STIB3M +800bps SEK 400 m May/20 / / 800

29/04/2016 Corral Petroleum Holding 12.25% SEK 500 m May/21 B / / B 1256

1010

Company news from the past week (high yield)


Name News Implication

Tallink

Tallink reported a slightly weaker than expected Q2 16 with EBITDA down 34% y/y to EUR36m. However, we believe that most of the drop in EBITDA could be explained by lower charter revenue and changed fleet mix. Currently, the company has strong credit metrics on par with a higher credit rating than we have assigned, but due to our expectation of higher leverage in 2016/17, we keep a ‘BB-’ senior unsecured shadow rating on Tallink’s bond. We believe bond valuation continues to be attractive. Combined with the possibility of receiving more waiver fees before the bond matures, we stay Overweight on the Tallink 2018 bond.

Credit negative

UPM

UPM (MW): Article out in Uruguayen newspaper Subrayado about UPM. The article states that UPM is to begin bilateral negotiations with the Uruguayan government concerning a second pulp mill in Uruguay. The article states that UPM's investment could be as high as USD4bn with the Uruguayan government contribution with some USD1bn for roads and rail investments. UPM was vague about this following the Q2 report but it now seems more and more likely that UPM could engage in new investments in Uruguay. The USD4bn mentioned in the article seems a tad high even for a green field pulp mill, so we will watch closely for any comments from UPM.

Credit negative

Golar LNG Partners

Golar LNG Partners (GMLP): In an SEC filing in July, GMLP stated that Golar Tundra, which was recently acquired from Golar LNG, has not yet been accepted by its counterpart, WAGL - the reason being that the terminal is not yet ready for operations. GMLP is entitled for hire for 90 days under the contract and thereafter, regular payments under the contract should commence and the FSRU should be formally accepted. If this does not materialise, legal actions can be taken against WAGL to receive its rights under the contracts. Should Golar Tundra not commence on the contract 12-months after the drop down, GMLP may require that GLNG repurchase the Golar Tundra. With this being just a delay on the terminal, we are not overly concerned that this won't work out since this is about a delay at the terminal (name of the game in LNG), but this adds some uncertainty to the much-needed cash flow contribution of USD24m per year from Golar Tundra to better position GMLP to redeem the 2017 maturity. More colour on the subject is expected on the quarterly release in late August.

Credit negative

1111

Company news from the past week (high yield)



J Lauritzen

J Lauritzen has allegedly sold one of its two Ultramax newbuilding contracts to the new outfit, BW Dry Cargo (which has confirmed the acquisition). A resale of these vessels is currently quoted at USD22.3m and J Lauritzen ordered the vessels for just shy of USD30m in January 2014, we estimate. The company's outstanding capex was USD20m on the vessel and the company had paid 35% of the purchase price with equity, so by assuming a sale in line with benchmark prices, the sale contributes with USD2.8m of free cash. More importantly, the vessel won't contribute with a daily loss from its delivery date in August and the company had committed loan facilities with a LTV of 65% (USD14.5m) at delivery, which can now potentially be used elsewhere in the group. The last Ultramaxnewbuilding is scheduled for delivery in January 2017; we should not rule out a sale of that one either, but we expect the company to await the situation as dry bulk asset values are currently in an upward trend.

Credit positive

SAS

SAS (B/S; B2/S) reported solid traffic numbers for July 2016 with passenger traffic up 10.8% y/y and load factor up 1.2 p.p. to a record high 88.1%. The high load factor supported ticket prices that decreased by 4% y/y (-1% currency adjusted). The decrease in ticket prices despite record high loads is due to relatively high capacity additions in Scandinavia (+6-7% y/y). Overall, in a month marked by terror attacks impacting air travel and profit warnings from Lufthansa/EasyJet, it is comforting to see solid numbers from SAS.

Credit positive

Metsä Board

Metsä Board performed somewhat below expectations in Q2 16. Overall revenues missed Bloomberg consensus by 5% and were down some 19% y/y (due mostly to lower graphic paper revenues). Despite the miss on revenues, adjusted EBIT was roughly in line at EUR35.8m (consensus: EUR36.4m). Negatively, the near-term outlook continues to be affected by ramp-up issues at Husum. Metsä revised down its FY 2016 volume forecast for the mill by 25%. Hiccups in the ramp-up process could cause delays but should not prevent an upgrade to 'BBB-', in our view. In this light, we stick to our Overweight recommendation on the EUR-denominated Metsa 2019s.

Credit negative

Meda

Late on 5 August, Meda confirmed that a change of control event had occurred for its 2018 and 2019 SEK600M bonds after Mylan acquired 94% of Meda's shares. This means bondholders can sell their bonds at price 100 plus accrued but unpaid interest up until repurchase Date (3 Nov). Note that we see Mylan's acquisition of Meda as a credit positive event due to Mylan's higher credit quality with investment grade ratings vs our previous BB credit view on Meda.

Credit positive

12

Scandi investment grade

1313

Chart 1. Relative value, indicative mid spreads Chart 2. Credit spread development

Source: Bloomberg, Danske Bank Markets Source: Bloomberg, Danske Bank Markets

Switch to DONGAS 3% call 20s from DONGAS 4.875% call 18sTake profit from strong performance at the short end (Published 9 August 2016)



Key arguments for the trade

• The DONGAS call 20s have clearly underperformed the DONGAS

call18s despite benign newsflow and longer-term earnings visibility due to new offshore wind concessions and oil divestments.

• The DONGAS call 20s trade at fair levels between the ‘BBB’ and the ‘BBB-’ curve, while the 18s trade tighter than the ‘BBB’ curve. Both bonds are rated ‘BB+’ by S&P and ‘Baa3’ by Moody’s.

• The DONGAS call 20s trade at a somewhat lower cash price (101.5) than the DONGAS call 18s (106.5). Exposure to hybrids trading significantly above par can be a problem in the case of par-call events (i.e. a change of rating methodology, changes to accounting rules or changes to tax rules) – affecting the hybrids.

• We see very limited risk in the very short term, due to high hedge levels on GBP, oil and gas. While oil exposure rises from 2018 (due to hedges running off), we expect this to be offset by growth in the Wind Power division. This growth seems low risk as subsidised prices on offshore wind parks are already secured up until 2020. Growth after 2020 is more uncertain given political risk and the risk of high competition for future tenders. As such, we remain underweight the DONGAS call 2023. This is also because we fear that shareholder focus will slowly rise up management’s agenda.

• See Credit Update: DONG Energy – Weighed down by lower wind

content, 4 August.

• See Trade idea: Switch to DONGAS 3% call 20s from DONGAS

4.875% call 18s, 9 August.

VATFAL (Baa2/BB+) 3.1% '22 (SEK)

VATFAL (Baa2/BB+) 3% '27 (EUR)

SSELN (Baa2/BBB) 5.6% '17 (EUR)

SSELN (Baa2/BBB) 2.4% '21 (EUR)

SEVFP (Baa2/NR) 3% '20 (EUR)

SEVFP (Baa2/NR) 2.5% '22 (EUR)

GASSM (Ba1/BB+) 4.1% '22 (EUR)

GASSM (Ba1/BB+) 3.4% '24 (EUR)

ENGIFP (Baa1/BBB) 4.8% '21 (EUR)



ENGIFP (Baa1/BBB) 3% '19 (EUR)

ENELIM (Ba1/BB+) 6.5% '19 (EUR)

ENELIM (Ba1/BB+) 5% '20 (EUR)

ENECO (NR/BBB) 3.3% '21 (EUR)

ENBW (Baa2/BBB-) 3.6% '21 (EUR)

EDF (Baa2/BB+) 4.3% '20 (EUR)

DONGAS (Baa3/BB+) 6.3% '23 (EUR)

DONGAS (Baa3/BB+) 4.9% '18 (EUR)

DONGAS (Baa3/BB+) 3% '20 (EUR)

CNALN (Baa3/BBB-) 3% '21 (EUR)

Corporate hybrids BB+ Corporate hybrids BBB-

Corporate hybrids BBB+

Corporate hybrids BBB

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250

300

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400

450

1 2 3 4 5 6 7 8 9 10 11 12

Mid Spread (EUR)*

YTW**

* Z-spreads. Discount margin for floaters. Swapped to indicated currency. ** Years-to-worstNote: Fair value curve(s) based on Danske Bank Markets' (mid) peer group of European issuers

100

150

200

250

300

350

400

450

500

550

600

650

Feb-2016 Mar-2016 Apr-2016 May-2016 Jun-2016 Jul-2016 Aug-2016

ASW

DONGAS EUR 3% 2020 (Hybrid) DONGAS EUR 4.875% 2018 (Hybrid)

DONGAS EUR 6.25% 2023 (Hybrid) VATFAL EUR 3% 2027 (Hybrid)

http://danskeanalyse.danskebank.dk/abo/CreditUpdateNokiaQ116110516/$file/CreditUpdate_Nokia_Q116_110516.pdf

http://danskeanalyse.danskebank.dk/abo/DongEnergy090816/$file/DongEnergy_090816.pdf

1414

Recent trade ideas (investment grade)


See the end of this document for a list of our coverage including shadow ratings and recommendations

Recent ideasType Trade Idea

Opened 09 Aug 2016

Opened 27 Jun 2016

Opened 03 Jun 2016

Opened 03 Jun 2016

Opened 27 May 2016

Opened 27 May 2016

Opened 02 May 2016

Opened 18 Apr 2016Outright Buy Danfoss 1.375% 2022

(EUR)

The spread on the DNFSDC 22s trades wider than the ‘BBB’ fair value curve and is rated ‘BBB’ with stable outlook by S&P.

Outright Buy Kemira 2019s and 2022s

(EUR)

The Kemira (Danske Bank Markets: ‘BBB-’) 2019s and 2022s trade with a wide differential to rated peers. Despite Kemira’s unrated status, we believe this differential is too large.

Outright Buy Carlsberg EUR 2024 Carlsberg 2024 is trading significantly wider than the consumer goods BBB curve

Switch Buy Carlsberg EUR 2024 and

fund it by selling Carlsberg EUR

2019

Carlsberg 2024 is trading significantly wider than the consumer goods BBB curve whereas Carlsberg 2019 is priced within the consumer goods BBB curve.

Buy SEB AT1 USD 5.75% call

2020

SEB's AT1 USD 5.75% call 2020 has underperformed closest peers recently resulting in about 50bp pick up to Swedbank's'20 or SHB's '21 and about 30bp to Nordea's '21

Switch Buy Maersk EUR 2021 and fund

by selling Maersk EUR 2019

Pick-up is c. 40bp for around 1.5 years of maturity extension.

Outright Buy Maersk EUR 2021 Maersk EUR 2021 is trading wider than the BBB- industrial curve vs. Maersks BBB+/NO rating.

Switch Buy DONGAS 3% call 2020 and

fund by selling DONGAS 4.875%

call 2018

The DONGAS 3% call 2020 have clearly underperformed the DONGAS 4.875% call 2018 in the past 6 months. This is unjustified biven the benign newsflow in DONG Energy

Outright

1515

Best and worst performers (Nordic coverage universe)- Investment grade

Source: Bloomberg, Danske Bank Markets (both charts)

1 week in local currencies 1 month in local currencies

20

16

15

10

9

9

9

9

8

7

-14

-14

-15

-16

-17

-19

-23

-25

-26

-26

-30-20-100102030

Fortum Varme Holding samagt med…

TDC A/S EUR 2022

Swedish Match AB SEK 2020

Statkraft AS EUR 2017

TDC A/S EUR 2018

Telenor ASA EUR 2018

AP Moeller - Maersk A/S EUR 2017

SKF AB EUR 2018

Securitas AB EUR 2018

Investor AB EUR 2018

Telia Co AB EUR 2025

SpareBank 1 SR-Bank ASA EUR 2021


Teollisuuden Voima Oyj 2021

G4S International Finance PLC EUR 2018

SpareBank 1 SR-Bank ASA EUR 2020

Teollisuuden Voima Oyj EUR 2019

TDC A/S EUR 2027

Neste Oyj EUR 2022

Vestas Wind Systems A/S EUR 2022


18

14

14

10

9

7

7

6

6

6

-2

-2

-3

-3

-3

-4

-4

-4

-14

-19

-30-20-100102030

Fortum Varme Holding samagt med…

TDC A/S EUR 2022

Swedish Match AB SEK 2020



Statkraft AS EUR 2017

Vattenfall AB EUR 2021

DONG Energy A/S EUR 2021

AP Moeller - Maersk A/S EUR 2017


SBAB Bank AB EUR 2018

Skandinaviska Enskilda Banken AB EUR…


DNB Bank ASA EUR 2020

Teollisuuden Voima Oyj EUR 2025

Danske Bank A/S SEK 2017

Danske Bank A/S SEK 2019

Lansforsakringar Bank AB SEK 2020

Vestas Wind Systems A/S EUR 2022

TDC A/S EUR 2027


1616

Selected new investment-grade issues**

Source: Bloomberg, Danske Bank Markets

*Estimated

**Excluding increases in existing bond issues (taps)

Date Issuer Coupon CCY Volume Maturity S&P / Mdy / Fitch ASW/DM

12/08/2016 Vasakronan Ab NIBOR3M +103bps NOK 700 m Aug/21 / / 103

10/08/2016 Sparebank 1 Ringerike NIBOR3M +84bps NOK 300 m Feb/21 / / 84

10/08/2016 Shell International Fin 0.375% EUR 1 250 m Feb/25 / Aa2e / 27

09/08/2016 Lyse As NIBOR3M +108bps NOK 200 m Feb/22 / / 108

03/08/2016 Bnp Paribas (Tier 2) 2.25% EUR 750 m Jan/27 BBB+ / Baa2 / A 195

02/08/2016 Thermo Fisher Scntfc Fin EUR003M +45bps EUR 600 m Aug/18 BBB / Baa2 / BBB 45

28/07/2016 Autoroute Seine Sarthe 2.485% EUR 858 m Jul/46 / Baa2 / 175

27/07/2016 Banco De Sabadell Sa 0.4% EUR 400 m Sep/18 BB+ / Baa3 / WD -

26/07/2016 Vodafone Group Plc 1.6% EUR 1 000 m Jul/31 BBB+ / Baa1 / BBB+ 95

26/07/2016 Wells Fargo & Company 1% EUR 2 000 m Feb/27 A / A2 / AA- 72

20/07/2016 Teva Pharm Fnc Nl Ii 0.375% EUR 1 750 m Jul/20 / Baa2 / BBB 65

20/07/2016 Bank Of America Corp 0.75% EUR 1 500 m Jul/23 BBB+ / Baa1 / A 75

20/07/2016 Goldman Sachs Group Inc 1.625% EUR 2 000 m Jul/26 BBB+ / A3 / A 130

18/07/2016 Jpmorgan Chase & Co 0.625% EUR 2 000 m Jan/24 A- / A3 / A+ 60*

12/07/2016 Perkinelmer Inc 1.875% EUR 500 m Jul/26 BBB / Baa3 / BBB 165

12/07/2016 Intesa Sanpaolo Spa EUR003M +148bps EUR 300 m Jul/23 BBB- / Baa1 / BBB+ 148

12/07/2016 Resa Sa Belgium 1% EUR 300 m Jul/26 / A2 / 75

12/07/2016 Bnp Paribas 0.75% EUR 500 m Nov/22 A / A1e / Ae 50

12/07/2016 Bpce Sa (sub.) 3% EUR 696 m Jul/26 A / A2 / A 262*

11/07/2016 Pepsico Inc 0.875% EUR 750 m Jul/28 A / A1 / A 47

11/07/2016 Aroundtown Property Hlgd 1.5% EUR 500 m Jul/24 BBB / / 205

07/07/2016 Nykredit Realkredit As 0.75% EUR 500 m Jul/21 BBB+ / Baa1u / A 98

05/07/2016 Bank Of China/Luxembourg 0.75% EUR 500 m Jul/21 / A1 / A 90*

05/07/2016 Total Capital Intl Sa 0.75% EUR 1 500 m Jul/28 A+ / Aa3 / AA- 43

05/07/2016 Lansforsakringar Bank STIB3M +100bps SEK 300 m Jul/21 A / A1 / 100

04/07/2016 Asml Holding Nv 1.375% EUR 1 000 m Jul/26 / Baa1 / BBB+ 115

01/07/2016 Repsol Intl Finance EUR003M +70bps EUR 600 m Jul/18 BBB- / Baa2 / BBB 70

30/06/2016 Brown-Forman Corp 1.2% EUR 300 m Jul/26 A- / A1 / A 85

30/06/2016 Deutsche Bahn Finance Bv 0.875% EUR 750 m Jul/31 AA- / Aa1 / AA 26

29/06/2016 Molson Coors Brewing Co 1.25% EUR 800 m Jul/24 BBB- / Baa3 / BBB- 110

1717

Company news from the past week (investment grade)



APMM

APMM’s Q2 16 report was widely as expected, with EBITDA down 32% y/y to USD1.8bn, due mainly to continued weakness in Maersk Line as container freight rates fell 24% y/y. Reported net debt to EBITDA increased to 1.6x, from 1.3x in Q1 16. We expect metrics to weaken further in coming quarters but we also expect APMM to be able to maintain metrics commensurate with the current ‘BBB+’ rating, as we expect container freight rates to rise slightly in H2 16 due to increased idling of vessels. The valuation of bonds is becoming increasingly attractive, as it already reflects a one to two notch downgrade. However, the continued weakness in the container industry and the upcoming strategic review of the APMM Group, which is due to be published before the end of Q3, leave us on the sidelines for now. Hence, we maintain our Marketweight recommendation.

Credit neutral

LKAB

LKAB (DBM: BBB) reports a somewhat disappointing result for Q2 with an operating loss of SEK277m (Q2 15: negative SEK228m) even though sales rose by 7% to SEK3.8bn and with rising iron ore prices from previous quarters. According to the company, this is due to its hedging policy, with price hedging having a SEK464m negative impact on the result in Q2. We assume this should mean that we should see a gradual increasing positive impact on the company's results in the coming quarters as the higher iron ore prices appear into the result. The operating cash flow improved and was positive before investments but negative SEK600m after investments, still an improvement from the year earlier (negative SEK1.5bn), partly as investments are scaled back. Payments for the structural transformation project (moving parts of Kiruna) impacted the cash flow negatively by SEK525m. Net debt (including provisions for the structural transformation project) was largely unchanged from Q1 at SEK5.5bn with a still strong liquidity position of SEK13.4bn. LKAB management confirmed that the current focus is on further cost reductions (target of at least SEK800m cost reductions by Q1 17). Supported by its still low leverage, we maintain our 'BBB' credit view on LKAB with stable outlook. The company's bonds have tightened back in from previous wides at the end of Q1 and we now see LKAB's bond spreads as fair relative to other 'BBB' category names in the SEK market.

Credit negative

SpareBank 1 Nord-

Norge

SpareBank 1 Nord-Norge once again showed its relative strength in Q2 by reporting lower loan losses than its closest peers - something we expect to continue. At the same time, focus is on building up capitalisation further to a good buffer to minimum requirements. All in all, this has led us to raise our recommendation from Underweight to Marketweight.

Credit positive

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Sparebank 1 SMN

We lower our recommendation on SpareBank 1 SMN (MINGNO) from Marketweight to Underweight as, in our view, the valuation has become too tight versus other Nordic regional banks. The Q2 results were solid and, positively, loan losses declined from the high level of Q1. Still, the exposure to oil-related clients makes us cautious and we cannot rule out a further deterioration in the coming period. With this in mind, we believe the risk-reward is better in, for example, the two Danish banks Jyske and Sydbank.

Credit positive

TDC

TDC's Q2 16 EBITDA was roughly in line with Bloomberg consensus. Positively, the result indicated that pressure in the Danish Consumer Mobile division is abating and the unit increased y/y gross profit for the first time in more than five years. Importantly, TDC also kept its FY 2016 guidance following the results. Adjusted net debt remained largely flat at 3.3x q/q, as a small reduction in net debt was fully offset by the deconsolidation of TDC Sweden in EBITDA. Overall, we consider TDC is executing well on its strategy but, in our view, credit investors are likely to stay focused on its ownership structure, which we expect to limit positive spread development on the back of this result. We maintain our Marketweight recommendation.

Credit neutral

SpareBank 1 SR-

Bank

SRBANK’s Q2 16 results showed improving core income, stable capitalisation and sound liquidity. However, loan losses doubled and the bank revised its loan loss guidance for 2016 upwards mainly due to individual commitments in the oil-related sector. Our concern remains its indirect exposure to oil and we still expect it to get worse before it gets better. Thus, we reiterate our Underweight recommendation.

Credit neutral

G4S

G4S’s H1 16 was decent from an operating perspective, but leverage is too high for investment grade. However, we believe S&P will give G4S some time to deleverage – mainly through divestments. Furthermore, bondholders are supported by G4S’s sufficient liquidity position and a 125bp step-up clause should G4S be downgraded to high yield. We maintain our Marketweight recommendation on G4S, balancing a slow pace of deleveraging and the risk of a rating downgrade with solid liquidity, potential divestments and an attractive step-up. We prefer the 2018 bond over the 2017 bond.

Credit neutral

Hexagon

Hexagon's growth remained moderate in Q2, with some further margin improvement. Indications are that the growth rate could pick up in coming quarters. We maintain our 'BBB-' credit view on Hexagon, with a positive outlook. We continue to believe that further acquisitions are on the company's agenda and our 'BBB-' credit view assumes that Hexagon's adjusted net debt to EBITDA will remain below 3.5x over time. If no larger debt-funded transactions materialise so that adjusted leverage remains below 3.0x (end-June 2.4x), we would consider upgrading our credit view to 'BBB'. We continue to see Hexagon's SEK bonds as fairly priced relative to peers with similar credit quality.

Credit neutral

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Aktia Bank

Aktia Bank (A3/PO, A-/NO) reported Q2 results significantly above Q1 (54% on operating profit) due to strong income driven by commissions. Loan losses were once again very low at EUR0.1m as a result of the lending mainly being low-risk mortgages. CET1 at 19.7%, up from 19.5% at end-Q1. Guidance still for an operating profit on level with 2015. All in all a good set of figures, which should be taken positively by the market.

Credit positive

Sampo

Sampo (NR): Q2 spot on SME Direkt consensus on pre-tax profit. Combined ratio in non-life at 84.5%, which is once again highlighting the robustness of Nordic insurance. Consensus had expected 85.4%. According to our Equity analyst, who spoke to the company the morning it reported, Sampo is still aiming for a rising dividend in 2016 vs. 2015, even if Nordea is to cut its dividend. This would be done by issuing more subdebt out of If (Sampo's non-life insurance arm). A neutral set of figures, in our view.

Credit neutral

Akelius

Akelius continued to deliver good growth in Q2, while leverage declined slightly (reported LTV: 47%). In the coming quarters we expect interest costs to continue to fall as maturing debt is refinanced with new cheaper financing. This together with a forthcoming asset sale suggests potential for some further improvement of credit metrics. We also expect the company’s secured LTV to gradually decline towards the 25% target for 2018 (end Q2: 33%). This should in our view mean that S&P at some stage will remove its notching of Akelius bonds. Considering this, we still regard the company’s EUR- and SEK-denominated bonds as attractive. Akelius remains one of our top picks in the Nordic real estate sector.

Credit positive

Vattenfall

According to Swedish media, Vattenfall’s (MW) proposed divestment of its lignite assets to EPH could be in danger. This is because LMMG (a German and Mongolian investment group) claims it was excluded from the bidding process. LMMG furthermore questions the legitimacy of Vattenfall offering cash to EPH for taking over their assets (thereby getting rid of the decommissioning liabilities in connection with cleaning up the mines). The claim is that this is in violation with the rules of government support, claiming that Sweden helps Vattenfall getting the deal done by accepting a cash transfer from seller to buyer. The EU now has to handle the complaint from LMMG. Since EU approval is a condition for the lignite divestment to EPH, this could delay the sale, or in a worst case derail it all together. We view the likelihood of the latter as extremely slim, and for now, this should not be influencing spreads. However, something to watch going forward.

Credit neutral

20Credit Indicators

Credit indicators

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Chart pack: euro spreads and returns

Source: Macrobond Financial, Danske Bank Markets [all charts]

Euro IG ASW, iBoxx indices

Euro HY ASW, Merrill Lynch indices

IG total return, iBoxx indices, 2014-01=100

HY total return, Merrill Lynch indices, 2014-01=100

2222

Chart pack: relative value


iTraxx vs iBoxx

Euro vs US CDS indices - IG (Markit) Euro vs US HY bond indices (Merrill Lynch)

2323

Chart pack: general market development


European swap and government yields

Euro swap curve spread

3M Libor, US and euro area

EUR/USD basis swaps

2424

Chart pack: funds flow


Europe, net sales

Sweden, net sales

US, net sales

Norway, net sales

2525

Chart pack: macro


GDP y/y growth, calendar adjusted

Euro area y/y change in bank lending

Purchasing Manager Indices

Euro area lending standards

26

Coverage universe, credit ratings

and recommendations

2727

Our coverage and shadow ratings 1 of 6

Source: Standard & Poor's, Moody's, Fitch, Danske Bank Markets

Ratings from S&P/Moody's/Fitch and Danske Bank Markets shadow ratings

Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookAhlstrom Oyj BB- Stable M. Rosendal / J. MagnussenAkelius Residential Property Ab BBB- Stable L. Landeman / P. Ahmarinejad OVERWEIGHTAktia Bank Plc A- Neg A3 Pos L. Holm / K. JensenAlandsbanken Abp BBB Neg L. Holm / K. JensenAmbu A/S BBB- Stable J. Magnussen / M. RosendalAp Moeller - Maersk A/S BBB Baa1 Stable B. Børsting/J. Magnussen MARKETWEIGHTArla Foods Amba BBB Stable G. Bergin / L. LandemanAtlas Copco Ab A Stable A2 Stable A Stable B. Børsting / M. Rosendal UNDERWEIGHTAvinor As AA- Stable A1 Stable G. Bergin / L. Landeman MARKETWEIGHTBalder BBB- Stable L. Landeman / P. AhmarinejadBank 1 Oslo Akershus As BBB+ Stable L. Holm / K. JensenBank Norwegian As BBB Stable L. Holm / K. JensenBeerenberg Holdco Ii As B Stable B Ø. MossigeBillerudkorsnas Ab BBB- Pos M. Rosendal / L. LandemanBonum Pankki Oyj BBB Stable L. Holm / K. JensenBrage Finans As BBB Stable L. Holm / K. JensenBw Offshore BB Ø. MossigeCarlsberg Breweries A/S Baa2 Neg BBB Stable B. Børsting / M. Rosendal MARKETWEIGHTCastellum Ab BBB- Stable L. Landeman / P. AhmarinejadCitycon Oyj BBB Stable Baa1 Stable L. Landeman / P. Ahmarinejad MARKETWEIGHTColor Group As BB- Stable BB- B. Børsting / N. RipaCom Hem Holding Ab BB Stable M. Rosendal / J. Magnussen OVERWEIGHTCorem Property Group Ab BB- Stable B+ L. Landeman / P. AhmarinejadDanfoss A/S BBB Stable J. Magnussen / B. Børsting OVERWEIGHTDanske Bank A/S A Stable A2 Stable A StableDeep Sea Supply Plc B- Neg Ø. MossigeDestia Group Oy BB- Stable B+ L. Landeman / G. BerginDfds A/S BBB- Stable B. Børsting / N. RipaDlg Finance As BB- Stable M. Rosendal / B. BørstingDna Ltd BBB- Stable M. Rosendal / J. MagnussenDnb Bank Asa A+ Neg Aa2 Neg L. Holm / K. Jensen UNDERWEIGHTDof Asa B+ Neg Ø. Mossige

Recomm.Danske Bank S&P Moody's Fitch

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Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookDof Subsea As B+ Neg Ø. MossigeDong Energy A/S BBB+ Stable Baa1 Neg BBB+ Stable J. Magnussen / L. Landeman MARKETWEIGHTDsv A/S BBB Stable B. Børsting / M. RosendalEg Holding B Stable J. Magnussen / N. RipaEidesvik Offshore Asa B Neg Ø. MossigeEika Boligkreditt As A- Stable L. Holm / K. JensenEika Forsikring As BBB+ Stable L. Holm / K. JensenEika Gruppen As BBB Stable L. Holm / K. JensenEksportfinans Asa BBB Pos Ba3U Stable L. Holm / K. JensenElectrolux Ab BBB+ Stable Wr WD G. Bergin / B. Børsting MARKETWEIGHTElenia Oy BBB J. Magnussen / L. Landeman MARKETWEIGHTElisa Oyj BBB+ Stable Baa2 Stable M. Rosendal / J. Magnussen OVERWEIGHTFarstad Shipping Asa B Stable B- Ø. MossigeFastpartner Ab BB Stable BB- L. Landeman / P. AhmarinejadFelleskjopet Agri Sa BBB- Stable B. Børsting / M. RosendalFingrid Oyj A+ Pos A1 Pos A+ Stable J. Magnussen / L. Landeman OVERWEIGHTFinnair Oyj BB+ Stable B. Børsting / M. RosendalFortum Oyj BBB+ Stable Baa1 Stable BBB+ Stable J. Magnussen / L. Landeman UNDERWEIGHTFortum Varme Holding Samagt Med Stockholms Stad Ab BBB+ Stable J. Magnussen / L. LandemanFred Olsen Energy Asa B Neg B- S. Stormyr / B.K. RøedG4S Plc BBB- Neg B. Børsting / M. Rosendal MARKETWEIGHTGetinge Ab BB Stable L. Landeman / G. BerginGolar Lng Partners Lp BB Stable BB- B.K. Røed / J. MeyerGolden Close Maritime Corp Ltd CCC S. Stormyr / B.K. RøedHavila Shipping Asa D Neg Ø. MossigeHeimstaden Ab BB Stable BB- L. Landeman / P. AhmarinejadHemso Fastighets Ab A- Stable L. Landeman / P. Ahmarinejad MARKETWEIGHTHexagon Ab BBB- Pos L. Landeman / G. BerginHkscan Oyj BB Stable M. Rosendal / B. BørstingHoegh Lng Holdings Ltd BB- Stable B+ B.K. Røed / J. MeyerHoist Kredit Ab Ba1 Stable G. Bergin / L. LandemanHusqvarna Ab BBB Stable L. Landeman / G. BerginIca Gruppen Ab BBB Stable G. Bergin / L. Landeman


2929




Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookIkano Bank Ab BBB Stable L. Holm / K. JensenInvestor Ab AA- Stable Aa3 Stable G. Bergin / B. Børsting OVERWEIGHTIss A/S BBB Stable B. Børsting / M. Rosendal OVERWEIGHTJ Lauritzen A/S B Stable B- B.K. Røed / J. MeyerJefast Holding Ab B Stable L. Landeman / G. BerginJernhusen Ab A- Stable G. Bergin / L. LandemanJyske Bank A/S A- Stable Baa1U Stable L. Holm / K. Jensen OVERWEIGHTKemira Oyj BBB- Stable Wr M. Rosendal / L. LandemanKesko Oyj BBB Neg G. Bergin / L. LandemanKlaveness Ship Holding As BB- Stable B+ B.K. Røed / J. MeyerKlovern Ab BB+ Stable BB L. Landeman / P. AhmarinejadKongsberg Gruppen BBB+ Stable BBB+ Ø. MossigeLantmannen Ek For BBB- Stable G. Bergin / L. LandemanLoomis Ab BBB Stable B. Børsting / M. RosendalLuossavaara-Kiirunavaara Ab BBB Stable L. Landeman / G. BerginMeda Ab BB- Stable L. Landeman / G. BerginMetsa Board Oyj BB+ Pos Ba2 Stable M. Rosendal / L. Landeman OVERWEIGHTMetso Oyj BBB Stable Baa2 Stable B. Børsting / M. Rosendal MARKETWEIGHTNcc Ab BBB- Stable L. Landeman / G. BerginNeste Oyj BBB- Stable J. Magnussen / L. Landeman MARKETWEIGHTNibe Industrier Ab BBB- Stable G. Bergin / L. LandemanNokia Oyj BB+ Pos Ba1 Stable BB+ Pos M. Rosendal / J. Magnussen OVERWEIGHTNordax Bank Ab BBB- Stable L. Holm / K. JensenNordea Bank Ab AA- Neg Aa3 Stable AA- Stable L. Holm / K. Jensen UNDERWEIGHTNorth Atlantic Drilling Ltd CCC+ Neg CCC S. Stormyr / B.K. RøedNorwegian Air Shuttle Asa B+ Stable B B. Børsting / M. RosendalNorwegian Property Asa BBB- Stable BBB H. Syed/ B. EngebretsenNykredit Bank A/S A Stable Baa3U Stable A Stable L. Holm / K. Jensen OVERWEIGHTNynas Group B+ Stable J. Magnussen / L. LandemanObos Bbl BBB Stable H. Syed/ B. Engebretsen MARKETWEIGHTOcean Rig Udw Inc CCC+ Neg Ca Neg S. Stormyr / B.K. RøedOcean Yield Asa BB BB- Ø. Mossige


3030




Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookOdfjell Se B+ Stable B B.K. Røed / J. MeyerOlympic Ship As B Stable B Ø. MossigeOp Corporate Bank Plc AA- Neg Aa3 Stable WD L. Holm / K. Jensen OVERWEIGHTOrava Residential Reit Plc B+ Stable L. Landeman / G. BerginOrkla Asa BBB+ Stable BBB+ H. Syed/ B. EngebretsenOutokumpu Oyj B3 Pos M. Rosendal / L. LandemanPacific Drilling Sa CCC+ Neg Caa2 Neg S. Stormyr / B.K. RøedPetroleum Geo-Services Asa CCC+ Neg Caa1 Neg S. StormyrPostnord Ab BBB+ Stable G. Bergin / L. LandemanProsafe Se B- Neg CCC+ S. Stormyr / B.K. RøedRamirent Oyj BB+ Stable B. Børsting / M. RosendalRem Offshore Asa B- Ø. MossigeSaab Ab BBB+ Stable Wr G. Bergin / L. LandemanSandnes Sparebank BBB+ Stable L. Holm / K. JensenSandvik Ab BBB Neg B. Børsting / M. Rosendal MARKETWEIGHTSas Ab B Stable Wr Stable B. Børsting / M. RosendalSbab Bank Ab A Neg A2 Stable L. Holm / K. Jensen MARKETWEIGHTScania Ab BBB+ Neg M. Rosendal / B. Børsting MARKETWEIGHTSeadrill Ltd B Neg B- S. Stormyr / B.K. RøedSecuritas Ab BBB Stable Wr B. Børsting / M. Rosendal MARKETWEIGHTShip Finance International Ltd BB Stable BB- Wr B.K. Røed / J. MeyerSiem Offshore Inc B- Neg Ø. MossigeSkandinaviska Enskilda Banken Ab A+ Stable Aa3 Stable AA- Stable L. Holm / K. Jensen OVERWEIGHTSkanska Ab BBB+ Stable L. Landeman / G. BerginSkf Ab BBB Neg Baa2 Stable M. Rosendal / G. Bergin MARKETWEIGHTSognekraft As BBB- Stable J. Magnussen / L. LandemanSolstad Offshore Asa B+ Stable B+ Ø. MossigeSpar Nord Bank A/S BBB+ Stable L. Holm / K. JensenSparebank 1 Boligkreditt As A- Stable L. Holm / K. JensenSparebank 1 Nord Norge A1 Stable A Stable L. Holm / K. Jensen MARKETWEIGHTSparebank 1 Smn A1 Stable A- Stable L. Holm / K. Jensen UNDERWEIGHTSparebank 1 Sr-Bank Asa A1 Neg A- Stable L. Holm / K. Jensen UNDERWEIGHT


3131




Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookSparekassen Kronjylland BBB Stable L. Holm / K. JensenSponda Oyj BBB- Stable L. Landeman / G. BerginSrv Group Oyj B Stable B- Louis LandemanSsab Ab B+ Stable M. Rosendal / L. Landeman MARKETWEIGHTSt1 Nordic Oy BB Stable J. Magnussen / L. LandemanStatkraft Sf A- Neg Aaa Stable J. Magnussen / L. Landeman MARKETWEIGHTStatnett Sf A+ Stable Wr Stable J. Magnussen / L. Landeman MARKETWEIGHTStatoil Asa A+ Stable Aa3 Stable J. Magnussen / L. Landeman UNDERWEIGHTStena Ab BB- Neg B3 Stable B. Børsting / N. Ripa UNDERWEIGHTStockmann Oyj Abp B+ Stable M. Rosendal / G. BerginStolt-Nielsen Ltd BB+ Stable BB B.K. Røed / J. MeyerStora Enso Oyj BB Stable Ba2 Pos WD M. Rosendal / L. Landeman UNDERWEIGHTStorebrand Bank Asa BBB+ Stable BBB+ Stable Nr Stable L. Holm / K. JensenStorebrand Livsforsikring Group BBB+ Stable Baa1 Stable L. Holm / K. JensenSunnfjord Energi As BBB- Stable J. Magnussen / L. LandemanSuomen Hypoteekkiyhdistys BBB Neg L. Holm / K. JensenSvensk Fastighetsfinansiering Ab BBB Stable Louis LandemanSvenska Cellulosa Ab Sca A- Stable Baa1 Stable M. Rosendal / B. Børsting MARKETWEIGHTSvenska Handelsbanken Ab AA- Neg Aa2 Stable AA Stable L. Holm / K. Jensen MARKETWEIGHTSwedavia Ab A- Stable G. Bergin / L. LandemanSwedbank Ab AA- Neg Aa3 Stable AA- Stable L. Holm / K. Jensen MARKETWEIGHTSwedish Match Ab BBB Stable Baa2 Stable B. Børsting / M. Rosendal OVERWEIGHTSydbank A/S Baa1 Stable L. Holm / K. Jensen MARKETWEIGHTTallink Grupp As BB Stable BB- B. Børsting / J. MagnussenTdc A/S BBB- Stable Baa3 Stable BBB- Stable M. Rosendal / J. Magnussen MARKETWEIGHTTechnopolis Oyj BB+ Stable BB L. Landeman / G. BerginTeekay Lng Partners Lp BB Stable BB- Ø. MossigeTeekay Offshore Partners Lp BB Stable BB- Ø. MossigeTele2 Ab BBB Stable M. Rosendal / J. MagnussenTelefonaktiebolaget Lm Ericsson BBB+ Neg Baa1 Stable BBB+ Stable M. Rosendal / J. Magnussen MARKETWEIGHTTelenor Asa A Stable A3 Stable M. Rosendal / J. Magnussen MARKETWEIGHTTelia Co Ab A- Stable Baa1 Stable A- Stable M. Rosendal / J. Magnussen OVERWEIGHT


3232




Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookTeollisuuden Voima Oyj BB+ Stable Wr BBB Neg J. Magnussen / L. Landeman OVERWEIGHTTopdanmark A/S BBB+ Stable L. Holm / K. JensenTryg Forsikring A/S L. Holm / K. JensenUpm-Kymmene Oyj BB+ Stable Ba1 Pos WD M. Rosendal / L. Landeman MARKETWEIGHTVasakronan Ab A- Stable A- L. Landeman / P. AhmarinejadVattenfall Ab BBB+ Neg A3 Neg BBB+ Stable J. Magnussen / L. Landeman MARKETWEIGHTVestas Wind Systems A/S BBB Stable J. Magnussen / N. Ripa OVERWEIGHTVictoria Park Ab BB Stable BB- L. Landeman / P. AhmarinejadVolvo Ab BBB Stable Baa2 Stable BBB Stable M. Rosendal / B. Børsting MARKETWEIGHTWelltec A/S B Neg B2 Neg S. StormyrWihlborgs Fastigheter Ab BB+ Stable BB L. Landeman / P. AhmarinejadWilh Wilhelmsen Asa BB+ Stable B.K. Røed / J. MeyerYit Oyj B Stable L. Landeman / G. Bergin


3333

Fixed Income Credit Research team

Find the latest Credit Research: :

Danske Bank Markets: http://www.danskebank.com/danskemarketsresearch Bloomberg: DNSK<GO>

Thomas Hovard

Head of Credit Research

+45 45 12 85 05

[email protected]

Pegah Ahmarinejad

Real Estate

+46 8 568 80593

[email protected]

Gabriel Bergin

Strategy, Industrials

+46 8 568 80602

[email protected]

Brian Børsting

Industrials

+45 45 12 85 19

[email protected]

Lars Holm

Financials

+45 45 12 80 41

[email protected]

Jakob Magnussen

Utilities, Energy

+45 45 12 85 03

[email protected]

Øyvind Mossige

Oil services

+47 85 40 54 91

[email protected]

Niklas Ripa

High Yield, Industrials

+45 45 12 80 47

[email protected]

Knut-Ivar Bakken

Fish farming

+47 85 40 70 74

[email protected]

Bendik Engebretsen

Industrials

+47 85 40 69 14

[email protected]

Louis Landeman

Industrials, Real Estate

+46 8 568 80524

[email protected]

Bjørn Kristian Røed

Shipping

+47 85 40 70 72

[email protected]

Mads Rosendal

Industrials, TMT

+45 45 14 88 79

[email protected]

Sondre Dale Stormyr

Offshore rigs

+47 85 40 70 70

[email protected]

Katrine Jensen

Financials

+45 45 12 80 56

[email protected]

Henrik René Andresen

Credit Portfolios

+45 45 13 33 27

[email protected]

Haseeb Syed

Industrials

+47 85 40 54 19

[email protected]

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Disclosures

This research report has been prepared by Danske Bank Markets, a division of Danske Bank A/S ('Danske Bank'). The author of this research report is Katrine Jensen, Analyst.

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3535

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