Moody’s downgrades Danske Bank

Danske Bank A/S 

30.05.2012 22:26

Dissemination of a Adhoc News, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------



Company announcement           
30 May 2012                    
Company announcement No. 9/2012

                                        

                         Moody's downgrades Danske Bank





In the course of a major review of 114 European financial institutions that was
announced on 15 February 2012, Moody's Investors Service has lowered the Danske
Bank Group's ratings. 



As part of a series of ratings changes for Danish banks, Moody's reduced Danske
Bank's long-term rating from A2 to Baa1 and its short-term rating from P-1 to
P-2. The outlook was adjusted upwards, from 'negative' to 'stable'. 



In its announcement, Moody's writes that Danish banks generally are operating
in a difficult macroeconomic climate and they are heavily dependent on funding
from the international money markets. In addition, it is still Moody's opinion
that, in comparison with other Nordic and European countries, the Danish state
is much less willing to support its banking sector. 



Danske Bank takes note of Moody's downgrades but does not understand Moody's
very negative view of the Danish banking sector. 



'We have had a close dialogue with Moody's in recent months,' says Henrik
Ramlau-Hansen, Chief Financial Officer. 'We are certain that Moody's has heard
our arguments, but we do not think they are reflected in the rating the Bank
has received.' 



Danske Bank notes that Moody's continues to take a very negative view of the
level of systemic support in Denmark, among other things. As a systemically
important financial institution (SIFI), however, Danske Bank will doubtless
enjoy the same support in Denmark that the other SIFIs in the Nordic region
will receive in their home countries. 



'There is broad political support for a well-functioning financial sector in
Denmark, as evidenced by the various bank packages, among other things'
continues Henrik Ramlau-Hansen. 'Moreover, the government has appointed a
committee that will designate the SIFIs and define the special rules and
considerations that will apply to them. If Danske Bank is treated the same on
that score as the other large Nordic banks, our rating will be two notches
higher.' 



Danske Bank is now moving in a positive direction and expects declining losses
in the coming years. In addition, the Bank has launched several initiatives to
reduce expenses and raise income that will improve earnings significantly and
further strengthen the capital base. 



The Bank has a strong liquidity base, and with a capital base of DKK 159
billion and a solvency need of  DKK 91 billion, the Bank had a very comfortable
capital buffer of DKK 68 billion at the end of Q1 2012. 







                                Danske Bank A/S

                                        

Contacts:

Henrik Ramlau-Hansen, Chief Financial Officer, phone +45 45 14 06 66

Peter Rostrup-Nielsen, Chief Risk Officer, phone +45 45 14 07 60

Kenni Leth, Head of Press Relations, phone +45 45 14 56 83 / +45 51 71 43 68
News Source: NASDAQ OMX



30.05.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------
 
Language:     English
Company:      Danske Bank A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010274414
WKN:          
 
End of Announcement                             DGAP News-Service
 
---------------------------------------------------------------------------