Investment Research Weekly Credit Update · Vattenfall Q3 14 – HOLD Vattenfall’s Q3 14 results were weak. Underlying operations deteriorated y/y on the back of weaker prices,

Important disclosures and certifications are contained from page 9 of this report www.danskeresearch.com

Investment Research

Headlines

ECB confirms its target for asset buying plans.

Further rouble weakness.

Electrolux downgraded by S&P.

Market commentary

European credit indices have seen a gradual tightening this week. In the latter part of the

week, the credit market has found renewed support following the ECB’s confirmation on

Thursday that it aims to carry out its asset buying plan as previously communicated.

While earlier in the week the media reported rising tension among the members of the

ECB board and that some national central bank governors were willing to challenge ECB

president Mario Draghi, these reports proved to be exaggerated, at least for the time

being.

In the ECB’s statement, the central bank has stipulated a target of growing its balance

sheet up to the levels seen in 2012, i.e. indicating balance sheet growth of around

EUR1,000bn. This target was said to be unanimous. Mario Draghi also claimed that the

ECB’s council was unanimous in its willingness to use further unconventional tools,

including quantitative easing, if necessary. The ECB’s staff are now said to be working

on the potential additional measures that could be applied in addition to the already-

announced purchases of covered bonds and asset-backed securities. So far, the ECB has

bought only some EUR5bn of covered bonds, while acquisitions of asset-backed

securities should start later this month.

We regard the ECB’s continued commitment to an overall asset purchasing plan of

EUR1,000bn as broadly supportive for European credit spreads. As we do not regard the

European covered bond and asset-backed markets as large enough for the ECB to be able

to reach this volume target, European corporate bonds would be a natural next step for the

ECB to consider purchasing. A rough estimate suggests that there is a total of EUR930bn

of outstanding rated investment grade non-financial bonds (of which EUR620bn relates to

euro area corporates). Assuming the ECB could buy up to a maximum of 40% of the

outstanding volumes (an aggressive assumption), this would result in a potential purchase

volume of roughly EUR300bn.

7 November 2014

Analyst Louis Landeman +46 8 568 80524 [email protected]

Contents

Market commentary ................................................. 1

Selected charts ............................................................ 2

Recently published research ............................... 4

Official and shadow ratings ................................... 6

Weekly Credit Update

iTraxx Europe (investment grade)

Source: Bloomberg, Danske Bank Markets

iTraxx Crossover (high yield)


mailto:[email protected]

2 | 7 November 2014 www.danskeresearch.com

Weekly C

redit U

pd

ate


Table 1. Selected issues

Name Rating Coupon Cur. Tenor Size Spread*

DNA -/-/- 2.875% EUR 6.5Y 150 MS + 235 Ireland A-/Baa1/A- 2.4% EUR 15.5Y 3,750 MS + 102 Sweden AAA/Aaa/AAA 1% USD 3YR 3,000 MS-7 SEB A1/A+/A+ 5.75% USD 5.5Y 1,100 MS+385

Size in million, ratings are senior unsecured ratings from Standard & Poor’s/Moody’s/Fitch


This week has seen decent activity in primary markets, with a mix of corporate, financial

and sovereign issuers being active in the markets. Among corporates, Finnish telecoms

operator DNA issued a EUR150m bond maturing in March 2021 at m/s+235bp. Among

sovereigns, the Republic of Ireland issued a EUR3.75bn long 15-year bond at m/s+102bp,

which was met by strong demand, with total orders exceeding EUR8bn. In USD, the

Kingdom of Sweden did a three-year USD3bn bond at m/s-7bp. Among financials,

Swedish bank SEB issued its inaugural AT1 in the USD market. The bond was issued in

the form of a perpetual with non-call for 5.5 years (May 2020) and at a yield of 5.75%,

from initial price thoughts in the area of 6%.

Further rouble weakness

The rouble has accelerated its continued fall in the past days. On Wednesday, the central

bank of Russia changed strategy. Until now, the Russian central bank has aimed to keep

the rouble’s fall in check by applying automatic intervention in order to keep the currency

in a trading band but with a cap on daily interventions of USD350m. According to its new

policy, the central bank has stopped these daily interventions and instead stated that it will

make larger one-off interventions ‘if necessary for financial stability’.

How the market responds to this change in strategy remains to be seen in the coming

weeks. If it is not seen as credible, there is a clear risk that the fall in the rouble could

accelerate further. As a point of reference, prior to this announcement, the rouble had

already weakened against the euro by 13% since the end of Q3.

Companies within our coverage with significant exposure to the development of the

rouble include Carlsberg (38% of EBIT derived from Russia), Nokian Tyres (33% of

sales), Stockmann (17% of sales), YIT (24% of sales) and to a minor extent Atlas Copco

and DLG.

Electrolux downgraded by S&P

Late on Thursday, Standard & Poor’s announced that it had downgraded its rating on

Swedish home appliances manufacturer Electrolux from ‘BBB+’ to ‘BBB’. The outlook

is stable. The downgrade follows the company’s recent acquisition of GE Appliances

from General Electric for USD3.3bn in cash. The majority debt-financed acquisition is

expected to close in mid-2015. Once the acquisition closes in 2015, S&P expects

Electrolux to increase its debt from around SEK12bn currently to over SEK30bn. In order

to maintain its rating at the ‘BBB’ level, S&P expects Electrolux rapidly to bring down

leverage again, in order for the company’s debt to EBITDA ratio to decline to around

2.5x in 2016 (from the 3.0x expected in 2015). We currently have a HOLD

recommendation on Electrolux bonds.


Weekly C

redit U

pd

ate


Selected charts

iTraxx (Europe) vs CDX (US) Investment grade corporate yields

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

Nordic corporates vs iTraxx Nordic banks 5Y CDS spreads


Corporate BBB bond yield vs EuroSTOXX dividend yield 3M Libor OIS spreads



Weekly C

redit U

pd

ate


Financials spread vs non-financials (Industrials), A-rated


Europe fund flows Sweden fund flows Norway fund flows

Source: Macrobond Financial Source: Macrobond Financial Source: Macrobond Financial


Weekly C

redit U

pd

ate


Recently published research

Statkraft Q3 14 – BUY

Statkraft’s Q3 14 report was strong from a credit perspective. Net comparable revenues

rose 8% y/y on the back of higher hydro production and more fixed price contracts and

despite a weaker Nordic power price. Group clean EBITDA improved 22% y/y.

Statkraft’s net debt position was boosted by asset sales taking adjusted credit metrics

stronger but also weakening the business risk profile slightly. Metrics are now solid

compared with Statkraft’s current ratings. We continue to consider its bonds attractive

given the Norwegian owners’ support and Statkraft’s strong underlying earnings. We

maintain our Buy recommendation preferring the shorter end of the curve.

Securitas Q3 14 – HOLD

Securitas’s Q3 14 report was solid with a pickup in organic growth and only slight margin

pressure due to Spain. Credit metrics improved slightly y/y and adjusted net debt to LTM

EBITDA was 3.3x. We believe Securitas will increase its capex spending in the high-tech

security segment and we believe this will continue to constrain credit metrics. We see

bonds as fairly valued and maintain our HOLD recommendation. In the sector, we

continue to prefer G4S (BUY).

DONG Energy Q3 14 – HOLD

DONG Energy’s Q3 14 results were mixed from a credit perspective. Comparable

revenues rose 1% y/y, due mainly to higher oil and gas production sold at hedged prices.

Group clean reported EBITDA fell 7% due to wind asset divestments and weak thermal

power margins. DONG’s FCF was negative in Q3, taking group net debt higher. DONG’s

reported adjusted LTM FFO to net debt fell q/q to 32%, from 35%. DONG made a slight

positive revision to its FY guidance seeing stronger credit metrics at end-2014 than

previously. We see no rating pressure on DONG’s ‘BBB+’ rating and we still think this is

also the case in the medium term. We maintain our HOLD recommendation due to tight

pricing of DONG’s senior bonds. We see value in DONG’s call 15 and call 18 hybrids,

however, as we see little permanence risk.

YIT Q3 14

We are cautiously positive on YIT’s performance in Q3. While market conditions remain

challenging, especially in Russia, the company delivered some debt reduction in the

quarter. Also, some initiatives were taken to streamline the business. We maintain our

view of YIT as a ‘B’ credit with negative outlook. Our credit view assumes that the

company can successfully refinance its upcoming debt maturities over the coming

quarters. We would also like to see a continued reduction in leverage and improving

margins.

Vattenfall Q3 14 – HOLD

Vattenfall’s Q3 14 results were weak. Underlying operations deteriorated y/y on the back

of weaker prices, lower hydro output and tough generation margins. Comparable

EBITDA fell 12% y/y. Adjusted credit metrics deteriorated on the back of lower earnings

and are now relatively weak for agency requirements. Negative rating action could be

ahead. Vattenfall has taken a rather sizable SEK23.1bn impairment, relating mainly to its

non-Nordic operations. It also targets part of these as being for sale. We expect a dividend

and capex reduction announcement, which should cushion the negative credit impact

from this report. We maintain our HOLD recommendation but see value in the VATFAL

21s.

http://danskeanalyse.danskebank.dk/abo/CreditUpdateStatkraftQ314061114/$file/CreditUpdate_Statkraft_Q314_061114.pdf

http://danskeanalyse.danskebank.dk/abo/CreditUpdateSecuritasQ314041114/$file/CreditUpdate_Securitas_Q314_041114.pdf

http://danskeanalyse.danskebank.dk/abo/CreditUpdateDONGEnergyQ314311014/$file/CreditUpdate_DONGEnergy_Q314_311014.pdf

http://danskeanalyse.danskebank.dk/abo/CreditUpdateYITQ314311014/$file/CreditUpdate_YIT_Q314_311014.pdf

http://danskeanalyse.danskebank.dk/abo/CreditUpdateVattenfallQ314301014/$file/CreditUpdate_Vattenfall_Q314_301014.pdf


Weekly C

redit U

pd

ate


Ratings from Standard & Poor’s, Moody’s and Fitch and Danske Bank Markets shadow ratings 1 of 2

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

Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookAhlstrom Oyj B+ Stable Mads RosendalAkelius Residential Ab BB+ Pos BB Wiveca SwartingAmbu A/S BBB- Stable Jakob MagnussenAp Moeller - Maersk A/S BBB+ Stable Baa1 Stable Brian Børsting BUYArla Foods Amba BBB+ Stable Mads RosendalAtlas Copco Ab A Stable A2 Stable Mads Rosendal SELLAvinor As AA- Stable A1 Stable Åse Haagensen HOLDBank 1 Oslo Akershus As BBB+ Stable T. Hovard / L. HolmBank Norwegian As BBB Stable T. Hovard / L. HolmBeerenberg Holdco Ii As B+ Stable Øyvind MossigeBw Offshore BB+ Stable Øyvind MossigeCargotec Oyj BBB- Stable Mads RosendalCarlsberg Breweries A/S Baa2 Stable BBB Stable Brian Børsting SELLCermaq Asa BB Stable Knut-Ivar BakkenCitycon Oyj BBB Stable Baa2 Stable Åse HaagensenColor Group As BB- Stable B+ Åse HaagensenDanske Bank A/S A Neg Baa1 Pos A StableDfds A/S BB+ Stable Brian BørstingDlg Finance As BB- Stable Mads RosendalDna Ltd BBB- Stable Ola HeldalDnb Bank Asa A+ Stable A1 Neg T. Hovard / L. Holm HOLDDong Energy A/S BBB+ Stable Baa1 Stable BBB+ Stable Jakob Magnussen HOLDDsv A/S BBB Stable Brian BørstingEg Holding B Stable Jakob MagnussenEika Boligkreditt As A- Stable T. Hovard / L. HolmEika Gruppen As BBB Stable T. Hovard / L. HolmElectrolux Ab BBB Wr WD Brian Børsting HOLDElisa Oyj BBB Pos Baa2 Stable Ola Heldal BUYEntra Eiendom As A- Stable Åse HaagensenFarstad Shipping Asa BB Neg BB- Åse HaagensenFingrid Oyj A+ Stable A1 Stable A+ Stable Jakob Magnussen BUYFinnair Oyj BB Stable Brian BørstingFortum Oyj A- Neg A2 Neg A- Neg Jakob Magnussen SELLFortum Varme Holding Samagt Med Stockholms Stad Ab BBB+ Stable Jakob MagnussenFred Olsen Energy Asa BB+ Neg Sondre StormyrG4S Plc BBB- Stable Brian Børsting BUYGetinge Ab BB+ Neg Louis LandemanHeimstaden Ab BB Stable BB- Wiveca SwartingHemso Fastighets Ab BBB+ Stable Wiveca SwartingHoist Kredit Ab BB- Stable B+ Gabriel BerginHusqvarna Ab BBB- Pos Louis LandemanInvestor Ab AA- Stable A1 Stable Brian Børsting BUYIss A/S BBB- Stable Baa3 Stable Brian Børsting HOLDJ Lauritzen A/S B Stable B- Åse HaagensenJernhusen Ab A- Stable Gabriel BerginJyske Bank A/S A- Stable Baa1 Neg Thomas M. Hovard BUYKesko Oyj BBB Stable Mads RosendalKlaveness Ship Holding As BB- Stable B+ Bjørn Kristian RøedMeda Ab BB- Stable Louis LandemanMetsa Board Oyj B+ Pos B2 Pos Mads RosendalMetso Oyj BBB Stable Baa2 Neg Mads Rosendal HOLDNcc Ab BBB- Stable Wiveca SwartingNeste Oil Oyj BBB- Stable Jakob Magnussen HOLDNokia Oyj BB Pos Ba2 Stable BB Stable Ola Heldal HOLDNokian Renkaat Oyj BBB+ Stable Jakob MagnussenNordea Bank Ab AA- Neg Aa3 Neg AA- Stable T. Hovard / L. Holm SELLNorth Atlantic Drilling Ltd BB Stable BB- Sondre StormyrNorwegian Air Shuttle Asa BB- Stable B+ Brian BørstingNorwegian Property Asa BBB- Stable Åse HaagensenNykredit Bank A/S A+ Neg Baa2U Stable A Stable T. Hovard / L. Holm BUYNynas Group B+ Stable B+ Jakob MagnussenOdfjell Se B+ Stable B Bjørn Kristian RøedOlav Thon Eiendomsselskap Asa BBB+ Stable Åse HaagensenOlympic Shipping As B+ Stable B Åse HaagensenOrkla Asa BBB+ Pos Åse HaagensenOutokumpu Oyj B- Pos Mads RosendalPohjola Bank Oyj AA- Neg Aa3 Neg A+ Stable T. Hovard / L. Holm SELLPosten Norge As A- Stable Åse HaagensenPostnord Ab BBB+ Stable Gabriel BerginProsafe Se BB Stable Åse HaagensenRamirent Oyj BB+ Stable Brian Børsting

S&P Moody's FitchDanske Bank Recomm.


Weekly C

redit U

pd

ate


Ratings from Standard & Poor’s, Moody’s and Fitch and Danske Bank markets shadow ratings 2 of 2

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

Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookSaab Ab BBB+ Stable Wr Wiveca SwartingSampo Oyj Baa2 Stable T. Hovard / L. Holm HOLDSandnes Sparebank BBB+ Stable T. Hovard / L. HolmSandvik Ab BBB Stable Mads Rosendal HOLDSas Ab B- Stable Wr Pos Brian BørstingSbab Bank Ab A Neg A2 Neg T. Hovard / L. Holm HOLDScania Ab A- Stable Mads Rosendal HOLDSchibsted Asa BBB Stable Åse HaagensenSeadrill Ltd BB+ Stable BB Sondre StormyrSecuritas Ab BBB Stable Wr Brian Børsting HOLDSkandinaviska Enskilda Banken Ab A+ Neg A1 Neg A+ Pos T. Hovard / L. Holm BUYSkanska Ab BBB+ Stable Wiveca SwartingSkf Ab BBB+ Stable Baa1 Stable Mads Rosendal SELLSolstad Offshore Asa BB- Stable B+ Åse HaagensenSpar Nord Bank A/S BBB+ Stable T. Hovard / L. HolmSparebank 1 Boligkreditt As A- Stable Lars HolmSparebank 1 Nord Norge A2 Neg A Stable T. Hovard / L. Holm HOLDSparebank 1 Smn A2 Neg A- Stable T. Hovard / L. Holm HOLDSparebank 1 Sr-Bank Asa A2 Neg A- Stable T. Hovard / L. Holm HOLDSponda Oyj BBB- Stable Wiveca SwartingSt1 Nordic Oy BB Stable Jakob MagnussenStatkraft Sf A- Stable Aaa Stable Jakob Magnussen BUYStatnett Sf A+ Stable Wr Stable Jakob Magnussen HOLDStatoil Asa AA- Stable Aa2 Stable Jakob Magnussen SELLSteen & Strom As BBB+ Stable Åse HaagensenStena Ab BB Stable B2 Stable Brian Børsting BUYStockmann Oyj Abp B+ Stable Mads RosendalStolt-Nielsen Ltd BB+ Stable BB Bjørn Kristian RøedStora Enso Oyj BB Stable Ba2 Neg WD Mads Rosendal HOLDStorebrand Bank Asa BBB+ Stable BBB+ Neg Baa1 Neg T. Hovard / L. HolmSuomen Hypoteekkiyhdistys A- Stable T. Hovard / L. HolmSwedavia Ab A- Stable Gabriel BerginSwedbank Ab A+ Neg A1 Neg A+ Pos T. Hovard / L. Holm BUYSwedish Match Ab BBB Stable Baa2 Stable Brian Børsting HOLDSvensk Fastighetsfinansiering Ab BBB Stable Louis LandemanSvenska Cellulosa Ab Sca A- Stable Baa1 Stable Mads Rosendal BUYSvenska Handelsbanken Ab AA- Neg Aa3 Neg AA- Stable T. Hovard / L. Holm HOLDSydbank A/S Baa1 Neg T. Hovard / L. Holm BUYTallink Group As BB Stable BB- Jakob MagnussenTalvivaara Mining Co Plc C Mads RosendalTdc A/S BBB Neg Baa3 Stable BBB Stable Ola Heldal HOLDTeekay Offshore Partners Lp BB- Stable B+ Bjørn Kristian RøedTele2 Ab BBB Stable Ola HeldalTelefonaktiebolaget Lm Ericsson BBB+ Stable Baa1 Stable BBB+ Neg Ola Heldal HOLDTelenor Asa A- Pos A3 Stable Ola Heldal HOLDTeliasonera Ab A- Stable A3 Neg A- Stable Ola Heldal SELLTeollisuuden Voima Oyj BBB Neg Wr BBB Stable Jakob Magnussen BUYThon Holding As BBB+ Stable Åse HaagensenTine Sa BBB+ Stable Ola HeldalUpm-Kymmene Oyj BB Pos Ba1 Stable WD Mads Rosendal HOLDVasakronan Ab BBB+ Stable Wiveca SwartingVattenfall Ab A- Stable A3 Stable A- Neg Jakob Magnussen HOLDVestas Wind Systems A/S BBB- Pos Niklas Ripa BUYWilh Wilhelmsen Asa BBB- Stable Bjørn Kristian RøedVolvo Ab BBB Neg Baa2 Neg BBB Stable Mads Rosendal HOLDYit Oyj B Neg Louis Landeman

Danske Bank S&P Moody's Fitch Recomm.


Weekly C

redit U

pd

ate


Knut-Ivar Bakken

Fish farming (+47) 85 40 70 74 [email protected]

Wiveca Swarting

Real Estate, Construction (+46) 8 568 80617 [email protected]

Ola Heldal

TMT (+47) 85408433 [email protected]

Henrik René Andresen

Credit Portfolios (+45) 45 13 33 27 [email protected]

Brian Børsting

Industrials (+45) 45 12 85 19 [email protected]

Mads Rosendal

Industrials, Pulp & Paper (+45) 45 14 88 79 [email protected]

Lars Holm

Financials (+45) 45 12 80 41 [email protected]

Jakob Magnussen

Utilities, Energy (+45) 45 12 85 03 [email protected]

Åse Haagensen

High Yield, Industrials (+47) 22 86 13 22 [email protected]

Fixed Income Credit Research

Louis Landeman

TMT, Industrials (+46) 8 568 80524 [email protected]

Thomas Hovard

Head of Credit Research (+45) 45 12 85 05

[email protected]

Find the latest Credit Research

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

Gabriel Bergin

Strategy, Industrials (+46) 8 568 80602 [email protected]

Niklas Ripa

High Yield, Industrials (+45) 45 12 80 47 [email protected]

Bjørn Kristian Røed

Shipping (+47) 85 40 70 72 [email protected]

Sondre Dale Stormyr

Offshore rigs (+47) 85 40 70 70 [email protected]

Øyvind Mossige

Oil services (+47) 85 40 54 91 [email protected]












http://www.danskebank.com/danskemarketsresearch







Weekly C

redit U

pd

ate


Disclosures

This research report has been prepared by Danske Bank Markets, a division of Danske Bank A/S (‘Danske

Bank’). The author of the research report is Louis Landeman, Analyst.

Analyst certification

Each research analyst responsible for the content of this research report certifies that the views expressed in this

research report accurately reflect the research analyst’s personal view about the financial instruments and issuers

covered by the research report. Each responsible research analyst further certifies that no part of the compensation

of the research analyst was, is or will be, directly or indirectly, related to the specific recommendations expressed

in the research report.

Regulation

Danske Bank is authorised and subject to regulation by the Danish Financial Supervisory Authority and is subject

to the rules and regulation of the relevant regulators in all other jurisdictions where it conducts business. Danske

Bank is subject to limited regulation by the Financial Conduct Authority and the Prudential Regulation Authority

(UK). Details on the extent of the regulation by the Financial Conduct Authority and the Prudential Regulation

Authority are available from Danske Bank on request.

The research reports of Danske Bank are prepared in accordance with the Danish Society of Financial Analysts’

rules of ethics and the recommendations of the Danish Securities Dealers Association.

Conflicts of interest

Danske Bank has established procedures to prevent conflicts of interest and to ensure the provision of high-

quality research based on research objectivity and independence. These procedures are documented in Danske

Bank’s research policies. Employees within Danske Bank’s Research Departments have been instructed that any

request that might impair the objectivity and independence of research shall be referred to Research Management

and the Compliance Department. Danske Bank’s Research Departments are organised independently from and do

not report to other business areas within Danske Bank.

Research analysts are remunerated in part based on the overall profitability of Danske Bank, which includes

investment banking revenues, but do not receive bonuses or other remuneration linked to specific corporate

finance or debt capital transactions.

Danske Bank is a market maker and may hold positions in the financial instruments mentioned in this research

report.

Danske Bank, its affiliates and subsidiaries are engaged in commercial banking, securities underwriting, dealing,

trading, brokerage, investment management, investment banking, custody and other financial services activities,

may be a lender to the companies mentioned in this publication and have whatever rights are available to a

creditor under applicable law and the applicable loan and credit agreements. At any time, Danske Bank, its

affiliates and subsidiaries may have credit or other information regarding the companies mentioned in this

publication that is not available to or may not be used by the personnel responsible for the preparation of this

report, which might affect the analysis and opinions expressed in this research report.

See http://www-2.danskebank.com/Link/researchdisclaimer for further disclosures and information.

General disclaimer This research has been prepared by Danske Bank Markets (a division of Danske Bank A/S). It is provided for

informational purposes only. It does not constitute or form part of, and shall under no circumstances be

considered as, an offer to sell or a solicitation of an offer to purchase or sell any relevant financial instruments

(i.e. financial instruments mentioned herein or other financial instruments of any issuer mentioned herein and/or

options, warrants, rights or other interests with respect to any such financial instruments) (‘Relevant Financial

Instruments’).

The research report has been prepared independently and solely on the basis of publicly available information that

Danske Bank considers to be reliable. While reasonable care has been taken to ensure that its contents are not

untrue or misleading, no representation is made as to its accuracy or completeness and Danske Bank, its affiliates

and subsidiaries accept no liability whatsoever for any direct or consequential loss, including without limitation

any loss of profits, arising from reliance on this research report.

The opinions expressed herein are the opinions of the research analysts responsible for the research report and

reflect their judgement as of the date hereof. These opinions are subject to change and Danske Bank does not

http://www-2.danskebank.com/Link/researchdisclaimer


Wee

kly Cred

it Up

da

te


undertake to notify any recipient of this research report of any such change nor of any other changes related to the

information provided in this research report.

This research report is not intended for retail customers in the United Kingdom or the United States.

This research report is protected by copyright and is intended solely for the designated addressee. It may not be

reproduced or distributed, in whole or in part, by any recipient for any purpose without Danske Bank’s prior

written consent.

Disclaimer related to distribution in the United States This research report is distributed in the United States by Danske Markets Inc., a U.S. registered broker-dealer

and subsidiary of Danske Bank, pursuant to SEC Rule 15a-6 and related interpretations issued by the U.S.

Securities and Exchange Commission. The research report is intended for distribution in the United States solely

to ‘U.S. institutional investors’ as defined in SEC Rule 15a-6. Danske Markets Inc. accepts responsibility for this

research report in connection with distribution in the United States solely to ‘U.S. institutional investors’.

Danske Bank is not subject to U.S. rules with regard to the preparation of research reports and the independence

of research analysts. In addition, the research analysts of Danske Bank who have prepared this research report are

not registered or qualified as research analysts with the NYSE or FINRA but satisfy the applicable requirements

of a non-U.S. jurisdiction.

Any U.S. investor recipient of this research report who wishes to purchase or sell any Relevant Financial

Instrument may do so only by contacting Danske Markets Inc. directly and should be aware that investing in non-

U.S. financial instruments may entail certain risks. Financial instruments of non-U.S. issuers may not be

registered with the U.S. Securities and Exchange Commission and may not be subject to the reporting and

auditing standards of the U.S. Securities and Exchange Commission.

Investment Research Weekly Credit Update · Vattenfall Q3 14 – HOLD Vattenfall’s Q3 14 results were weak. Underlying operations deteriorated y/y on the back of weaker prices,

Documents