weekly credit update - danskebank.com · no drama regarding the q4 result. net debt is sek 1.1bn....

19 December 2014

Weekly Credit Update

Important disclosures and certifications are contained from page 22 of this report.

Analyst Gabriel Bergin +46 8 568 80602 [email protected]

Analyst Mads Rosendal +46 8 568 80594 [email protected]

2

- Market news

- Company news

- Trade ideas

Contents

- Chart pack

- List of official and shadow ratings and recommendations

3 Source: Bloamberg, Danske Bank Markets

What’s on our mind - general credit market news

• In terms of iTraxx indices, this week is looking to close tighter than last week, despite an intra-week peak of 10bp higher. The increased volatility is in line with what happened for most risk assets as the rouble weakening intensified on Tuesday after the oil price reached a new recent record low.

• On Wednesday, we published our Credit outlook for 2015. Ín this year’s edition you will find, apart from 14 sector comments with updated valuation, a special section on the effects of the lower oil price on Nordic credits and an update on Nordic default rates. Top picks for the coming months were also identified (in order of increasing risk/reward) as TVO, Volvo hybrid '23, SEB CoCo and Nynas.

• Finally, we would like to wish all of you Happy Holidays and a Happy New Year, as this is our last Weekly Credit Update for the year. See you again in 2015.

http://danskeanalyse.danskebank.dk/abo/CreditOutlook2015171214/$file/CreditOutlook2015_171214.pdf




4

BUY SASSS 2017 outright – Attractive absolute value – supported by adequate liquidity

• SAS has just released its Q4 13/14 report. Although it posted a result that was slightly worse than expected, we believe it was supportive from a credit perspective. This reflects the following:

• SAS has sufficient liquidity, in our view, to handle debt maturities to end-FY 2018. Cash and cash equivalents were SEK7.4bn at end-2013/14. Debt maturities to end-FY 2018 are around SEK6.6bn.

• Cash flow from operations was solid, with SEK0.8bn in Q4 13/14 and SEK1.1bn for FY 2013/14. With limited capex for the coming years (SEK1bn expected in 2014/15) and financing secured for most aircraft deliveries in 2015-17, we expect SAS to be free cash flow positive in the years to come – and to be able to maintain adequate liquidity.

• We believe the SAS 2017 offers an attractive absolute return. SAS AB is rated B-/S with adequate liquidity. Due to the significant amount of pledged assets, we estimate the bond rating at CCC+/CCC.

• SAS has hedged 43% of fuel consumption for the next 12 months. The positive impact is offset by a weaker SEK versus the USD but we estimate a positive net impact of SEK1-1.3bn for 2014/15. We expect the cost relief to support the bond valuation.

Brian Børsting +45 45 12 85 19 [email protected]

Niklas Ripa +45 45 12 80 47 [email protected]

SASSS 9 17

CCC

B-

0

100

200

300

400

500

600

700

800

900

1000

0 2 4 6 8 10 12

Indicative SEK-equivalent ASW spread

Years to maturity

0

500

1000

1500

2000

2500

20

15

20

16

20

17

20

18

20

19

20

20

20

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Debt maturity profile, SEKm

Note: As of 31 October 2014.; SAS financial year from November to

October; hence, SAS AB 2017 bond expires in SAS financial year

2018; SAS AB 17 is a callable bond with first call 26 August 2016

@102,25, curve swapped to SEK

Source: Bloomberg, SAS AB, Danske Bank Markets (both charts)

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SELL ATCOA2019 2.625% – BUY ATCOA2023 2.500% – The Atlas Copco 2019’s trade too tight for the rating, in our view

• The Atlas Copco 2019s trade tighter than the average

‘A+’ rated EUR corporate. We suggest going further out the curve and to buy the Atlas Copco 2023s to get more value out of a fairly tight name. Alternatively, investors can sell 5YR protection on Atlas Copco for an even greater pick-up relative to the cash curve.

• Atlas Copco has best-in-class low operational leverage as witnessed by its very strong margin protection in 2009.

• Atlas Copco is exposed to Oil & Gas E&P capex spending. However, since its exposure is fairly well distributed over the entire Oil & Gas E&P value chain, downside to new orders in 2015 as a result of the lower oil price should be fairly limited, in our view.

• Having added substantial amounts of debt to its balance sheet with the acquisition of Edwards group in 2014, we view the risk of large scale M&A as limited in Atlas Copco. Our base case is that Atlas Copco continues with smaller bolt-on acquisitions in the first half of 2015.

• Key risk for the case is, in our view, a further decline in demand from the Mining segment in 2015.

Brian Børsting +45 45128503 [email protected]

Mads Rosendal +46 8 568 80594 [email protected]

ATCOA CDS EUR SR 5Y

ATCOA '23 (A/A2)

ATCOA '19 (A/A2)

-10

0

10

20

30

40

50

60

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Indicative ASW offer

(bps)

EUR bonds - Investment Grade

Industrials: BBB+

Industrials: A+

Industrials: A

ATCOA '23 (A/A2)

ATCOA '19 (A/A2)

0,0

0,5

1,0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Indicative YTM offer (%)

EUR bonds - Investment Grade

Euro Swap yield

curve

A+/A/A-

Source: Bloomberg (<SRCH>GO) and Danske Bank Markets

* Benchmarked against a sample of highly liquid EUR corporate issues

(min size: EUR500m, TTM:1yr-10yrs)

mailto:[email protected]


6 Source: Danske Bank Markets

Recent trade ideas

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

Type Trade Idea

Opened 18 dec 2014

Start spread 807

Opened 18 dec 2014

Start spread 16

Opened 27 nov 2014

Start spread 72

Opened 25 nov 2014

Start spread 640

Opened 19 nov 2014

Start spread 450

Opened 18 nov 2014

Start spread 2

Opened 13 nov 2014

Start spread 115

Opened 24 okt 2014

Start spread 126

Outright SAABAB '19 Trading wider than the ‘BBB+’ shadow rating would imply

Curve spread Swith from STENA '19 to

STENA '20

Stena 2020 cheap compared with overall Stena credit curve and the Stena 2019 bond.

Curve spread Switch from SKFBSS '19 to

SKFBSS '18 or '20

SKF’s 2020s and 2018s offer attractive value relative to the rating (‘BBB+’ NO and ‘Baa1’ S) Downgrade seems priced in already

Outright VLVY' 17 or VLVY'19 We see the VLVY cash curve at attractively valued and an (uncertain) downgrade is more than priced in to spreads

Outright NYNAAB '18 NYNAAB '18's, which we see as 'B+' indicatively trade way too cheap relative to the industrial 'B+' curve

Outright COMHSS '19 COMHSS '19 looks cheap compared to other rated and unrated issues in SEK. Trades like a B+, but is officially rated BB-

Outright SASSS '17 We believe the SAS 2017 offers an attractive absolute value – supported by adequate liquidity

Curve spread Switch from ATCOA '19 to

ATCOA '23

The Atlas Copco 2019s trades tighter than the average ‘A+’ rated EUR corporate. Go out the curve and buy the '23s


Company news from the past week

Name News Implication

Stora Enso

Stora Enso is to divest a specialty and coated paper mill in Germany with a production capacity. This is a relatively small deal, Stora will book a non-recurring loss of EUR30m in Q4 but receive a cash gain of EUR7m either in Q1 or Q2 15. The sale will reduce Stora Enso's revenues by EUR155m. Stora Enso has long been looking for a buyer so the sale is not a surprise as it fits into Stora Enso's strategy of reducing its graphic paper exposure.

Credit positive

Hoist Finance

Hoist Finance has acquired a "landmark" portfolio in Italy. So most likely a relatively large acquisition, though in line with stated strategy and the geography not surprising given acq of Italian servicer TRC in July. Hoist also announced a rights issue of SEK100m among existing shareholders, probably to stabilise capital ratios after the acquisition. Difficult to estimate exactly where they end up post transactions, but at face value credit neutral - we expect Hoist to continue acquire portfolios and at the same time to defend a certain buffer to minimum regulatory capital.

Credit neutral

TVO

According to Finnish media, Areva confirms that the OL3 reactor they are building for TVO (BUY) will be ready for commercial use in 2018. If true, this is a key positive for TVO. Their bonds have been hammered in recent months due to increased fears over Areva not being able/willing to complete the reactor on time because of the company's downturn. Encouragingly, Areva/Siemens note that they expect to be finished already by 2016, after which years of testing will be on the agenda. If this story holds merit it should be spread positive for TVO.

Credit positive

Outokumpu

According to Bloomberg EU has ordered customs to register stainless steel imports from China and Taiwan. This is in order to make it possible to impose import tariffs retroactively for these volumes, in case the ongoing anti-dumping investigations lead to duties. Should lead to declining import volumes of stainless steel into Europe in Q1'15. Positive for Outokumpu, supporting our view that the European stainless market will pick up after weak Q4. From a credit perspective we still see risks from the delay and technical issues in the US plant, but the news shows that the EU is willing to take a stance against what is most likely highly subsidized imports from China and Taiwan so overall positive for the credit story.

Credit positive




SAS

Q4 result slightly worse than expected - but SEK0.8bn in operating cash flow is solid. No drama regarding the Q4 result. Net debt is SEK 1.1bn. Financial short tem debt SEK2.5bn - cash and cash equivalents SEK7.4bn - and on top of that unutilized credit facililities of SEK2.4bn. SAS expects positive pre-tax profit in 14/15 (but we heard that before!). Most assets already pledged so operations has to be profitable going forward. This is difficult due to fierce low cost competition. However short term liquidity is adequate. SAS has hedged 43% of expected fuel consumption for the next 12 months (with around 80% hedged for the next 6 months. SAS is rated B-/S. We believe the Q4 report will support short term sentiment regarding SAS bonds - sufficient liquidity and lower fuel costs should make SAS profitable in 2014/15.

Credit positive

Stockmann

Stockmann to downsize or withdraw Hobby Hall, Stockmann Beauty, Seppala businesses. Only the best performing stores of Seppala is to remain and about 70 jobs will be cut as a part of the new strategy. Further the Lindex unit plans to enter the Chinese market at some point in the near future. Stockmann has had a tough couple of quarters being hit by a double whammy of the falling rouble in its Russian division (17% of revenues) and declining demand in Finland. Its Lindex unit in Sweden has performed to a satisfactory level but not been able to mitigate decline in other units.

Credit positive

Volvo

Truck deliveries fell 10% y/y in November. On a regional basis November deliveries declined by 16% in South America due to lower deliveries in Brazil. Deliveries in Europe declined by 31%, as a result of high deliveries in 2013. Deliveries in North America increased by 21% in November thanks to a continuously high demand due to fleet renewal and a good economic development in general. In Asia deliveries increased 10%. Key take aways are the many regional differences in deliveries, but highlights the strength of being geographically diversified. A decline in deliveries is not positive for the case but Volvo becoming a more lean organization is still the key driver from a credit perspective. We maintain our BUY recommendation on the name

Credit neutral/negative




St1 Nordic

St1 Nordic has today announced that it will purchase Shell Norway’s downstream fuel retail network. St1 will also be launching an aviation fuel JV with Shell in Norway. The transaction is expected to close in H2 2015 pending competition authorities approval. Before this transaction, St1 only had a minor share of the Norwegian fuel & diesel retail market (below 4%). With Shell’s around 400 stations, we estimate that St1 will take its market share to roughly 45%.Overall this transaction will improve St1’s Nordic geographical diversification as the Group now has meaningful presence in all 4 Nordic countries. We suspect, however, that the acquisition price (not disclosed) could potentially force St1 Nordic to do new primary market funding. This, coupled with integration risk of the new assets could put some pressure on St1 Nordic’s bonds.

Credit negative

Victoria Park

Yesterday the company announced the acquisition of a property portfolio in Gothenburg for SEK925m. This will increase leverage somewhat further but management confirms a commitment to the financial policy of maintaining a debt to assets ratio of below 70% (end Q3:65%). Since end Q3 the company has also carried out some minor asset sales

Credit neutral

SCA

France’s autorite de la concurrence fines 11 companies a total of EU951.2m over price-fixing of cleaning and hygiene products, according to website statement. Between 2003 and 2006 co.s coordinated business policy related to large retailers and planned price increases, regulator says. SCA tissue was among the companies fined. It must now pay EUR45m or about SEK425m to the French authorities.

Credit neutral/negative


Selected new issues

•Very calm on the new issue front as the Christmas holidays are near and volatility is high.

Selected new issues

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

2014-12-18 Jpmorgan Chase & Co 0.837% SEK 3 000 m 2017-12-22 A / A3e / A+e2014-12-16 Kfw EUR003M +-9bps EUR 2 000 m 2020-03-23 AAA / Aaae / AAAe

Source: Bloomberg, Informa Global Markets och Danske Bank Markets

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Chart pack: Euro spreads and returns Euro IG ASW, iBoxx indices

Source: Macrobond, Danske Bank Markets [all charts]

Euro HY ASW, Merrill Lynch indices

IG Total Return, iBoxx indices, 2014-01=100

HY Total Return, Merrill Lynch indices, 2014-01=100

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Chart pack: Relative value iTraxx vs iBoxx

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

Euro vs US CDS indices - IG (Markit)

Nordic fin and non-fin corporates (IG) vs iTraxx

Euro vs US HY bond indices (Merrill Lynch)

13

Chart pack: General market development European swap and government yields


Euro swap curve spread

3m TED-spread, US & Euro Area

Euro/USD basis swaps

14

Chart pack: Fund flows Europe, net sales


Sweden, net sales

US, net sales

Norway, net sales

15

Chart pack: Macro GDP y/y growth, calendar adjusted


Euro area y/y chg in bank lending

Purchasing Manager’s Indices

Euro area lending standards

16

Our coverage and shadow ratings 1 of 5

Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookAhlstrom Oyj B+ Stable Mads RosendalAkelius Residential Ab BB+ Pos BB Louis LandemanAmbu 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 Ola Heldal 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 Louis LandemanColor Group As BB- Stable B+ Niklas RipaCom Hem Holding Ab BB- Stable Ola HeldalDanfoss A/S BBB Stable Jakob MagnussenDanske Bank A/S A Neg A3 Stable A StableDfds A/S BB+ Stable Niklas RipaDlg 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 Stable Wr WD Brian Børsting HOLDElisa Oyj BBB Pos Baa2 Stable Ola Heldal BUYEntra Eiendom As A- Stable Ola HeldalFarstad Shipping Asa BB Neg BB- Øyvind Mossige

Recomm.Danske Bank S&P Moody's Fitch

17


Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookFingrid 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 LandemanGolden Close Maritime Corp Ltd B Sondre StormyrHeimstaden Ab BB Stable BB- Louis LandemanHemso Fastighets Ab BBB+ Stable BBB Louis LandemanHkscan Oyj BB Stable Brian BørstingHoist Kredit Ab BB- Stable B+ Gabriel BerginHusqvarna Ab BBB- Pos Louis LandemanIkano Bank Ab BBB Stable T. Hovard / L. HolmInvestor Ab AA- Stable A1 Stable Brian Børsting BUYIss A/S BBB- Stable Brian Børsting HOLDJ Lauritzen A/S B Stable B- Bjørn Kristian RøedJernhusen 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 RøedLoomis Ab BBB- Stable Brian BørstingLuossavaara-Kiirunavaara Ab BBB+ Stable Louis LandemanMeda Ab BB- Stable Louis LandemanMetsa Board Oyj B+ Pos B1 Pos Mads RosendalMetso Oyj BBB Stable Baa2 Stable Mads Rosendal HOLDNcc Ab BBB- Stable Louis LandemanNeste Oil Oyj BBB- Stable Jakob Magnussen HOLDNokia Oyj BB Pos Ba2 Pos 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 Neg BB- Sondre Stormyr


18


Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookNorwegian Property Asa BBB- Stable Ola HeldalNykredit Bank A/S A+ Neg Baa2U Stable A Stable T. Hovard / L. Holm HOLDNynas Group B+ Stable B+ Jakob MagnussenOdfjell Se B+ Stable B Bjørn Kristian RøedOlav Thon Eiendomsselskap Asa BBB+ Stable Ola HeldalOlympic Shipping As B+ Stable B Øyvind MossigeOrkla Asa BBB+ Pos Ola HeldalOutokumpu Oyj B Pos Mads RosendalPohjola Bank Oyj AA- Neg Aa3 Neg A+ Stable T. Hovard / L. Holm SELLPosten Norge As A- Stable Ola HeldalPostnord Ab BBB+ Stable Gabriel BerginProsafe Se BB Stable Sondre StormyrRamirent Oyj BB+ Stable Brian BørstingSaab Ab BBB+ Stable Wr Louis LandemanSampo Oyj Baa2 Stable T. Hovard / L. Holm HOLDSandnes Sparebank BBB+ Stable T. Hovard / L. HolmSandvik Ab BBB Neg 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 Ola HeldalSeadrill 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 Louis LandemanSkf Ab BBB+ Neg Baa1 Stable Mads Rosendal SELLSolstad Offshore Asa BB- Stable B+ Øyvind MossigeSpar 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 HOLD


19


Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookSponda Oyj BBB- Stable Louis LandemanSt1 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 Ola HeldalStena Ab BB Stable B2 Stable Niklas Ripa BUYStockmann Oyj Abp B+ Stable Mads RosendalStolt-Nielsen Ltd BB+ Stable BB Bjørn Kristian RøedStora Enso Oyj BB Stable Ba2 Stable 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- Niklas RipaTdc 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 Stable 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 Ola HeldalTine Sa BBB+ Stable Ola HeldalUpm-Kymmene Oyj BB+ Stable Ba1 Stable WD Mads Rosendal HOLDVasakronan Ab A- Stable Louis LandemanVattenfall Ab A- Stable A3 Stable A- Neg Jakob Magnussen HOLD


20


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

Analyst(s)

Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating OutlookVestas Wind Systems A/S BBB- Pos Niklas Ripa BUYVictoria Park Ab BB- Stable B+ Louis LandemanWilh Wilhelmsen Asa BBB- Stable Bjørn Kristian RøedVolvo Ab BBB Neg Baa2 Neg BBB Stable Mads Rosendal HOLDYit Oyj B Neg Louis Landeman


21

Fixed Income Credit Research team Thomas Hovard, Chief Analyst Head of Credit Research +45 45 12 85 05 [email protected]

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

Mads Rosendal, Analyst Industrials, Pulp & Paper +46 8 568 80594 [email protected]

Jakob Magnussen, Senior Analyst Utilities, Energy +45 45 12 85 03 [email protected]

Knut-Ivar Bakken, Analyst Fish Farming +47 85 40 70 74 [email protected]

Brian Børsting, Senior Analyst Industrials +45 45 12 85 19 [email protected]

Lars Holm, Senior Analyst Financials +45 45 12 80 41 [email protected]

Gabriel Bergin, Analyst Strategy, Industrials +46 8 568 80602 [email protected]

Niklas Ripa, Senior Analyst High Yield, Industrials +45 45 12 80 47 [email protected]

Bjørn Kristian Røed,, Analyst Shipping +47 85 40 70 72 [email protected]

Ola Heldal, Analyst TMT +47 85 40 84 33 [email protected]

Sondre Dale Stormyr, Analyst Offshore Rigs +47 85 40 70 70 [email protected]

Henrik René Andresen, Analyst Credit Portfolios +45 45 13 33 27 [email protected]

Øyvind Mossige, Senior Analyst Oil sSrvices +47 85 40 54 91 [email protected]















22

Disclosures

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

Analyst certification

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

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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.

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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, 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.

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



23

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 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.

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Disclaimer related to distribution in the United States

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weekly credit update - danskebank.com · no drama regarding the q4 result. net debt is sek 1.1bn....

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