Landshypotek Bank’s AT1 instrument downgraded
S&P Global Ratings is downgrading Landshypotek Bank’s AT1 instrument from BB+ till BB.The downgrade of the AT1 instrument is a result of the implementation of the Swedish Financial Supervisory Authority's amended rules on mortgage risk weights, moving it from Pillar 2 to Pillar 1. Although this change does not directly affect the regulatory capital requirements in nominal terms of the bank, nor S&P’s measure of risk-adjusted capital and overall creditworthiness of the bank, it reduces the regulatory capital ratios. According to S&Ps criteria the bank should have a buffer of 700 basis