Weekly Credit Update Analyst Ola Heldal +47 85 40 84 33 19 May 2015 [email protected]

Weekly Credit Update Analyst Ola Heldal +47 85 40 84 33 19 May 2015 Olh@Danskebank.Com

Investment Research Important disclosures and certifications are contained from page 23 of this report www.danskebank.com/CI Contents

- Market news

- Best and worst performers

- Trade ideas

- Company news

- Chart pack

- List of official and shadow ratings and recommendations

2 What's on our mind - General credit market news

• European credit indices remained range bound last week with iTraxx main trading the 59.5-62.5 range, ending unchanged at around 60bp. The iTraxx Crossover index was range bound between 272bp and 293bp, closing more or less unchanged at 276bp. The volatility in long dated rates continued with 10-year bund yields opening the week at around 53bp, widening to 77bp to close around 62bp. • US jobless claims came in at 264,000 – the lowest level since April 2000 – while retail sales in the US recorded their first quarterly decline in three years. It is hoped the FOMC minutes released this week will shed more light on a future rate hike from the Fed. • The new issue market in Scandinavia was relatively muted, due partly to last week's public holiday. However, there were a handful of deals printed, including NOK1bn Norwegian Air Shuttle, USD150m Golar LNG Partners and SEK1.2bn Skandiabanken FRN. We expect further issuance in the coming weeks across the ratings spectrum.

Sources: Bloomberg, Danske Bank Markets (both charts)

3 Best and worst performers - Investment grade

1 week in local currencies 1 month in local currencies

-21.1 TDC A/S EUR 2015 -40.5 Danske Bank A/S SEK 2019 -16.1 Danske Bank A/S SEK 2019 -25.9 DNB Bank ASA EUR 2020 -12.3 Skandinaviska Enskilda Banken AB SEK… -24.7 Skandinaviska Enskilda Banken AB SEK… -9.0 TeliaSonera AB EUR 2031 -24.7 TeliaSonera AB EUR 2025 -7.4 TeliaSonera AB EUR 2027 -19.3 DNB Bank ASA EUR 2019 -7.1 TeliaSonera AB EUR 2025 -18.1 Investor AB EUR 2021 -6.8 DNB Boligkreditt AS EUR 2016 -18.0 TeliaSonera AB EUR 2027 -6.7 Skandinaviska Enskilda Banken AB EUR… -17.8 TeliaSonera AB EUR 2025 -6.5 TeliaSonera AB EUR 2025 -16.4 SBAB Bank AB SEK 2018 -6.2 Danske Bank A/S EUR 2017 -16.0 Danske Bank A/S EUR 2018 0.9 Nykredit Bank A/S EUR 2015 2.8 Investor AB EUR 2018 0.9 SpareBank 1 SMN EUR 2018 3.0 DONG Energy A/S EUR 2022 1.0 Nordea Bank AB EUR 2017 3.1 TeliaSonera AB EUR 2019 1.0 Nordea Bank AB EUR 2016 3.6 Metso OYJ EUR 2019 1.4 Svenska Handelsbanken AB EUR 2017 3.7 Securitas AB EUR 2017 1.4 Sampo Oyj EUR 2016 6.1 SKF AB EUR 2019 1.8 Sydbank A/S EUR 2016 6.6 Atlas Copco AB EUR 2023 2.5 SBAB Bank AB SEK 2018 6.9 Svenska Cellulosa AB SCA EUR 2023 3.6 Nordea Bank AB SEK 2017 7.1 Vattenfall AB EUR 2024 11.8 Lansforsakringar Bank AB SEK 2020 7.2 Telenor ASA EUR 2022 20 10 0 -10 -20 -30 10 0 -10 -20 -30 -40 -50 Change in local currencies (bp) Change in local currencies (bp)

Source: Bloomberg, Danske Bank Markets (both charts)

4 Best and worst performers - High yield

1 week in local currencies 1 month in local currencies

-115 Golden Close Maritime Corp Ltd USD… -209 Golden Close Maritime Corp Ltd USD… -26 Color Group AS NOK 2015 -168 North Atlantic Drilling Ltd USD 2019 -25 AX IV EG Holding III ApS DKK 2020 -153 Seadrill Ltd USD 2020 -25 North Atlantic Drilling Ltd NOK 2018 -116 Odfjell SE NOK 2017 -24 Seadrill Ltd USD 2017 -114 North Atlantic Drilling Ltd NOK 2018 -19 SAS AB SEK 2017 -101 Seadrill Ltd USD 2017 -18 Seadrill Ltd SEK 2019 -97 Odfjell SE NOK 2015 -16 Finnair OYJ EUR 2049 -96 J Lauritzen A/S NOK 2017 -14 SSAB AB SEK 2017 -90 Seadrill Ltd NOK 2018 -13 Finnair OYJ EUR 2018 -86 Color Group AS NOK 2015 24 Stolt-Nielsen Ltd NOK 2018 0 Stora Enso OYJ EUR 2016 30 Norwegian Air Shuttle ASA NOK 2017 0 Farstad Shipping ASA NOK 2017 30 Klaveness Ship Holding AS NOK 2020 2 Prosafe SE NOK 2016 35 SAS AB SEK 2019 3 St1 Nordic Oy EUR 2019 39 Olympic Ship AS NOK 2019 11 Farstad Shipping ASA NOK 2018 51 Meda AB SEK 2016 12 Meda AB SEK 2018 51 Meda AB SEK 2019 24 Meda AB SEK 2019 55 North Atlantic Drilling Ltd USD 2019 28 Olympic Ship AS NOK 2019 56 Meda AB SEK 2018 33 Meda AB SEK 2016 68 Teekay Offshore Partners LP/Teekay… 53 SAS AB SEK 2019 100 50 0 -50 -100 -150 100 50 0 -50 -100 -150 -200 -250 Change in local currencies (bp) Change in local currencies (bp)

Source: Bloomberg, Danske Bank Markets (both charts)

5 Jakob Magnussen BUY TVO 19s vs SELL Fortum 19s +45 45 12 85 03 – Spread compression ahead [email protected]

• TVO (BBB/NO) is currently trading wider than the 'BB+' curve. Z-spd (bp) 180 • Fortum (A-/NW) is in line or TVO 2.25 25 'BB+' EU utilities slightly tight to the 'BBB+' curve. (NR/BBB/BBB) 160 • The longer term spread trajectory of TVO should be positive, 140 'BBB-' EU utilities following more clarity on OL3 and arbitration. 120 TVO 2.5 21 • Fortum's trajectory is likely to be TVO 4.625 19 negative due to high shareholder 100 'BBB' EU utilities focus, Russian exposure, divestment of stable assets and 'BBB+' EU utilities 80 releveraging. • Both companies are currently 60 affected by weak Finnish power FUMVFH 2.25 22 (A2/A-) prices. 40 FUMVFH 4 21 FUMVFH 6 19 • We have an Overweight TVO 6 16 recommendation on TVO and an 20 Underweight recommendation on Fortum. 0 FUMVFH 4.5 16 Years to • The spread between the two 0 5 10 15 maturity Source: Danske Bank Markets, Bloomberg companies’ 2019s is currently 69bp. • This trade also makes sense in longer maturities.

6 Recent trade ideas

Recent ideas Type Trade Idea Sector spread Switch from Fortum 19s to TVO 19s Sell the Fortum 19s trading tight compared with fair value and buy Opened 11-May-15 TVO 19s trading wide even if they are downgraded. Start spread 69 Sector spread Switch from Metso 2019 to Sandvik We suggest selling the METSO 2019s, which have had a good run Opened 27-Apr-15 2026 since the spin-off of the group’s Pulp, Paper & Power business in 2014. Metso and Sandvik have similar business exposure (mining Start spread 56 and energy) but Sandvik is c.3x larger (in terms of revenues) and diversified into sectors to which Metso has no exposure. Outright Buy Neste Oil 2022 The Neste Oil 2022s trade wider than the 'BB+' curve, making Closed 21-Apr-15 them seem cheap relative to our shadow rating of 'BBB-‘. Start spread 161 Outright Buy Akelius Residential 2019 in SEK The Akelius Residential SEK 2019 FRN 3M Stibor+240bp trades Opened 13-Apr-15 wide relative to other similar unrated SEK bonds. Start spread 225 Outright Buy Vestas 2022 The Vestas EUR 2.75% 2022 trades cheap to a EUR corporate Opened 19-Mar-15 BBB. curve. Start spread 245 Currency trade Close of trade SSAB Recent performance in the SSAB EUR bond has closed the earlier Opened 10-Mar-15 19bp gap between the EUR and the SEK 2019 bonds. Start spread -2 Outright Buy Tallink 2018 FRN Tallink 2018 in NOK trades cheap to a global median 'BB-' Opened 27-Feb-15 credit curve (converted into NOK). Start spread 470 Outright CITCON '3.75 We believe that CITCON'3.75s trade at an attractive level relative Opened 10-Feb-15 the 'BBB' curve. Start spread 112 Outright EGASDK '20 EGASDK 20s, which we see as 'B‘, indicatively trade far too Opened 2-Feb-15 cheaply relative to the industrial 'B' curve. Start spread 608 See the end of this presentation for a list of our coverage including shadow ratings and recommendations

Source: Danske Bank Markets 7 Company news from the past week

Name News Implication Carlsberg (Marketweight) reported a slightly better than expected Q1 15, with operating profit at DKK661m versus DKK451m in Q1 14 and consensus of DKK608m. Net profit in Q1 15 was DKK70m versus DKK62m in Q1 14. Western Europe continues to do better than expected on margins due to continued restructuring, while Eastern Europe was doing slightly worse than expected. Q1 is a small quarter constituting only some 5-7% of total 2015E EBIT – hence, we would not read too much into the numbers. Carlsberg kept its guidance for 2015 unchanged and continues to expect operating profit to grow organically by mid- to high single digit percentages. Due to the decline in profit Carlsberg in Eastern Europe (Russia), we expect the region to account for below 20% of group EBIT in 2015. Credit neutral Credit metrics were marginally weaker y/y, with reported net debt to EBITDA of 3.1x versus 2.9x in Q1 14 and 2.9x at end-2014. Carlsberg stated at the release of the 2014 results that net debt to EBITDA was going to be lower than 2.5x at end-2015. As Q1 is so small, this should still be possible but will require low capex spending in 2015. Bonds tightened somewhat in Q1 15, due mainly to a stronger RUB/EUR. We do not expect Moody's to change its Baa2/NO on the back of the Q1 report – and we do not expect big spread movements on the back of the results, which we see as credit neutral. We maintain our Marketweight recommendation on Carlsberg. J Lauritzen (‘B/B-’) reported Q1 15 figures below our already conservative estimates. The Dry Bulk division reported EBITDA of USD-13.3m versus our estimate of USD-5.1m. The LPG division reported EBITDA of USD5.8m versus our estimate of USD3.1m. The company reduced its full-year guidance as expected. We do not expect to see positive P&L for J Lauritzen in the coming quarters but we reiterate J Lauritzen our focus on the liquidity situation, which remains sound, with USD255m of cash making the company Credit neutral ready to pay down the bond in May. NIBD increased from USD268m to USD282m. We conclude that the first quarter was, as expected, weak for its Dry Bulk division and the market remains weak. While the P&L will remain weak in 2015, the company is positioned, with its strong liquidity, to weather the storms. We keep our ‘B/B-’ rating on J Lauritzen.

Source: Danske Bank Markets

8 Company news from the past week

APMM (Marketweight) reported Q1 15 results marginally weaker than expected. EBITDA was USD2.6bn versus USD3.0bn in Q1 14 (consensus USD2.7bn), due mainly to lower earnings in Maersk Oil. However, the lower oil earnings also translate into a lower tax payment and, therefore, the net profit of USD1.6bn in Q1 15 was above the USD1.2bn reported in Q1 14. Overall, Maersk Line and APM Terminals continue to perform strongly. APMM made a small adjustment to its FY 2015 expectations. It now expects underlying profit excluding proceeds from the sale of the Danske Bank stake of USD4bn versus the earlier guidance of underlying profit ‘slightly below USD4bn’. APMM still guides for total gross capex of around USD9bn in 2015 (USD8.7bn in 2014). Reported net debt to A. P. Moller - LTM EBITDA was 0.67x – at the same level as the 0.65x reported at end-2014 and slightly lower than Credit neutral Maersk the 0.8x reported in Q1 14. Overall, this report did not contain any significant credit-related news and was much in line with expectations. We maintain our Marketweight recommendation. Bonds have widened since the beginning of the year due to a more shareholder-friendly attitude and the difficulties in the Drilling and Oil related parts of the group. Although the valuation is becoming more attractive, we believe the risk of larger scale M&A combined with clear shareholder focus (share buybacks, divestment of Danske Bank stake and distribution of proceeds to shareholders) and the weakness in the oil- and drilling-related entities is making us hold our horses for now. We continue to believe APMM is a high-quality name within the ‘BBB+’ space. Nynas Q1 15 (‘B+’) out. The report is decent from a credit perspective. Sales decreased 23% due to the sharp fall in the oil price y/y, filtering through to end-product prices. Encouragingly, Nynas reported that it was able to maintain total production volumes by increasing naphthenic output, offsetting lower bitumen output due to the closed Central European Bitumen division. Group comparable EBITDA fell to SEK14m, down 81% y/y. This reflects Nynas's FIFO inventory principle, meaning that it is now using the ‘old’ and expensive part of its crude oil inventories for production of end-products. This effect was flagged in the Q4 results and should not have taken markets by Nynas Credit neutral surprise. Furthermore, Nynas had a high inventory build-up in Q1 (which is part of the normal cycle preparing for the summer bitumen peak sales season). These effects caused group cash flow to be negative SEK770m, taking adjusted net debt up by 29% q/q. Subsequently, we see adjusted net debt to EBITDA at 4.0x, down from 3.2x last quarter. We expect the leverage metric to fall again in H2, when sales and production volume increase, coupled with lower input costs (when all the expensive oil is used) will boost cash flows. Overall, this was a weak report but not more than could be expected. Metrics remain in line with our 'B+' indicative rating. This report should not move spreads.

Source: Danske Bank Markets 9 Company news from the past week

Nykredit Bank (Marketweight) reported a net deficit of DKK375m in Q1, which is actually an improvement from Q4 14 (net deficit of DKK946m) but worse than Q1 14 (net deficit of DKK10m). Unsurprisingly, the main reason for the deficit was the falling interest rate (DK 30Y swap rate from c1.7% to 1.1% in Q1), which had cost Nykredit Bank DKK992m in Q1 on the interest rate swaps contracts it has made with clients. Moreover, Nykredit Bank booked DKK69m on the interest rate swaps contracts due to worse conditions for housing co-operations (andelsforeninger), which are the main clients for these contracts. Further to the negative result, the NII fell as much as 24% or by Nykredit Bank Credit neutral DKK141m q/q as a result of a 33% reduction in the bond portfolio. Positively, the fees were high as seen in other Danish banks (remortgaging fees among others) and the loan losses excluding interest rate swaps were a small reversal of DKK19m (DKK100m cost in Q4 14). Nykredit expects to issue ‘special senior debt’ and so on compliant with S&P's ALAC concept in order to improve its rating at S&P following yesterday's credit watch negative rating action. This sounds interesting to us and is something we intend to look into further. CET1 improved to 15.1% from 13.1% at end-2014 due mainly to the DKK2bn injection from the parent in February 2015 (c.2% impact).

Source: Danske Bank Markets

10 Selected new issues

Selected new issues Date Issuer Coupon CCY Volume Maturity S&P / Mdy / Fitch ASW/DM 12-05-2015 Norwegian Air Shuttle As NIBOR3M +575bps NOK 1 000 m May-18 / / 575 11-05-2015 Golar Lng Partners Lp US0003M +440bps USD 150 m May-20 / / 440 12-05-2015 Skandiabanken Ab STIB3M +50bps SEK 1 200 m May-18 / / 50 . Source: Danske Bank Markets

11 Chart pack: euro spreads and returns Euro IG ASW, iBoxx indices IG Total Return, iBoxx indices, 2014-01=100

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

Source: Macrobond Financial, Danske Bank Markets [all charts] 12 Chart pack: relative value iTraxx vs iBoxx EUR CDS Spreads – Nordic Banks

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

Source: Bloomberg, Macrobond Financial, Danske Bank Markets [all charts] 13 Chart pack: general market development European swap and government yields 3M TED-spread, US and euro area

Euro swap curve spread EUR/USD basis swaps

Source: Macrobond, Danske Bank Markets [all charts] 14 Chart pack: fund flows Europe, net sales US, net sales

Sweden, net sales Norway, net sales

Source: Macrobond Financial, Danske Bank Markets [all charts] 15 Chart pack: macro GDP y/y growth, calendar adjusted Purchasing Manager Indices

Euro area y/y change in bank lending Euro area lending standards

Source: Macrobond Financial, Danske Bank Markets [all charts] 16 Our coverage and shadow ratings 1 of 5

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

Danske Bank S&P Moody's Fitch Analyst(s) Recomm. Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating Outlook Ahlstrom Oyj B+ Stable Mads Rosendal Akelius Residential Property Ab BBB- Stable BBB- Louis Landeman Ambu A/S BBB- Stable Jakob Magnussen Ap Moeller - Maersk A/S BBB+ Stable Baa1 Stable Brian Børsting MARKETWEIGHT Arla Foods Amba BBB+ Stable Mads Rosendal Atlas Copco Ab A Stable A2 Stable Mads Rosendal UNDERWEIGHT Avinor As AA- Stable A1 Stable Ola Heldal MARKETWEIGHT Bank 1 Oslo Akershus As BBB+ Stable T. Hovard / L. Holm Bank Norwegian As BBB Stable T. Hovard / L. Holm Beerenberg Holdco Ii As B Stable Øyvind Mossige Billerudkorsnas Ab BBB- Stable Mads Rosendal Bw Offshore BB+ Stable Øyvind Mossige Cargotec Oyj BBB- Stable Mads Rosendal Carlsberg Breweries A/S Baa2 Neg BBB Stable Brian Børsting MARKETWEIGHT Cermaq Asa BB Stable Knut-Ivar Bakken Citycon Oyj BBB Stable Baa2 Stable Emil Hjalmarsson OVERWEIGHT Color Group As BB- Stable B+ Niklas Ripa Com Hem Holding Ab BB- Stable Ola Heldal Corem Property Group Ab BB- Stable B+ Emil Hjalmarsson Danfoss A/S BBB Stable Jakob Magnussen Danske Bank A/S A Neg A3 A Stable Dfds A/S BBB- Stable Niklas Ripa Dlg Finance As BB- Stable Mads Rosendal Dna Ltd BBB- Stable Ola Heldal Dnb Bank Asa A+ Stable A1 T. Hovard / L. Holm UNDERWEIGHT Dong Energy A/S BBB+ Stable Baa1 Stable BBB+ Stable Jakob Magnussen MARKETWEIGHT Dsv A/S BBB Stable Brian Børsting Eg Holding B Stable Jakob Magnussen Eika Boligkreditt As A- Stable T. Hovard / L. Holm Eika Gruppen As BBB Stable T. Hovard / L. Holm Eksportfinans Asa BBB- Pos Ba3 Stable T. Hovard / L. Holm Electrolux Ab BBB Stable Wr WD Brian Børsting MARKETWEIGHT

17 Our coverage and shadow ratings 2 of 5

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

Danske Bank S&P Moody's Fitch Analyst(s) Recomm. Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating Outlook Elenia Oy Jakob Magnussen OVERWEIGHT Elisa Oyj BBB+ Stable Baa2 Stable Ola Heldal OVERWEIGHT Entra Eiendom As A- Stable Ola Heldal Farstad Shipping Asa BB Neg BB- Øyvind Mossige Fingrid Oyj A+ Stable A1 Stable A+ Stable Jakob Magnussen MARKETWEIGHT Finnair Oyj BB Stable Brian Børsting Fortum Oyj A- A2 A- Neg Jakob Magnussen UNDERWEIGHT Fortum Varme Holding Samagt Med Stockholms Stad Ab BBB+ Stable Jakob Magnussen Fred Olsen Energy Asa BB Stable BB- Sondre Stormyr G4S Plc BBB- Stable Brian Børsting OVERWEIGHT Getinge Ab BB+ Neg Louis Landeman Golden Close Maritime Corp Ltd B- Sondre Stormyr Heimstaden Ab BB Stable BB- Louis Landeman Hemso Fastighets Ab BBB+ Stable BBB A- Stable Emil Hjalmarsson Hkscan Oyj BB Stable Brian Børsting MARKETWEIGHT Hoist Kredit Ab BB- Stable B+ Gabriel Bergin Husqvarna Ab BBB- Pos Emil Hjalmarsson Ikano Bank Ab BBB Stable T. Hovard / L. Holm Investor Ab AA- Stable A1 Stable Brian Børsting OVERWEIGHT Iss A/S BBB- Pos Brian Børsting OVERWEIGHT J Lauritzen A/S B Stable B- Bjørn Kristian Røed Jernhusen Ab A- Stable Gabriel Bergin Jyske Bank A/S A- Stable Baa T. Hovard / L. Holm OVERWEIGHT Kesko Oyj BBB Stable Mads Rosendal Klaveness Ship Holding As BB- Stable B+ Bjørn Kristian Røed Loomis Ab BBB- Stable Brian Børsting Luossavaara-Kiirunavaara Ab BBB+ Stable Louis Landeman Meda Ab BB- Stable Louis Landeman Metsa Board Oyj BB Stable B1 Pos Mads Rosendal MARKETWEIGHT Metso Oyj BBB Stable Baa2 Stable Mads Rosendal MARKETWEIGHT Ncc Ab BBB- Stable Emil Hjalmarsson Neste Oil Oyj BBB- Stable Jakob Magnussen OVERWEIGHT Nokia Oyj BB+ Pos Ba2 Stable BB Pos Ola Heldal MARKETWEIGHT

18 Our coverage and shadow ratings 3 of 5

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

Danske Bank S&P Moody's Fitch Analyst(s) Recomm. Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating Outlook Nokian Renkaat Oyj BBB+ Stable Jakob Magnussen Nordax Finans Ab BBB- Stable T. Hovard / L. Holm Nordea Bank Ab AA- Neg Aa3 AA- Stable T. Hovard / L. Holm UNDERWEIGHT North Atlantic Drilling Ltd BB- Neg B+ Sondre Stormyr Norwegian Air Shuttle Asa BB- Neg B+ Brian Børsting Norwegian Property Asa BBB- Stable Ola Heldal Nykredit Bank A/S A+ Neg Baa A Stable T. Hovard / L. Holm MARKETWEIGHT Nynas Group B+ Stable B+ Jakob Magnussen Ocean Yield Asa BB BB- Øyvind Mossige Odfjell Se B+ Stable B Bjørn Kristian Røed Olav Thon Eiendomsselskap Asa BBB+ Stable Ola Heldal Orava Residential Reit Plc B+ Stable B+ Mads Rosendal Olympic Ship As B+ Stable B Øyvind Mossige Orkla Asa BBB+ Pos Ola Heldal Outokumpu Oyj B Pos Mads Rosendal Pohjola Bank Oyj AA- Neg Aa3 Stable A+ Stable T. Hovard / L. Holm MARKETWEIGHT Posten Norge As A- Stable Ola Heldal Postnord Ab BBB+ Stable Gabriel Bergin Prosafe Se BB Stable Sondre Stormyr Ramirent Oyj BB+ Stable Brian Børsting Sandnes Sparebank BBB+ Stable T. Hovard / L. Holm Sandvik Ab BBB Neg Mads Rosendal OVERWEIGHT Sas Ab B- Stable Wr Stable Brian Børsting Sbab Bank Ab A Neg A2 Stable T. Hovard / L. Holm MARKETWEIGHT Scania Ab A- Stable Mads Rosendal MARKETWEIGHT Schibsted Asa BBB Stable Ola Heldal Seadrill Ltd BB Neg BB- Sondre Stormyr Securitas Ab BBB Stable Wr Brian Børsting MARKETWEIGHT Skandinaviska Enskilda Banken Ab A+ Neg A1 A+ Pos T. Hovard / L. Holm OVERWEIGHT Skanska Ab BBB+ Stable Emil Hjalmarsson Skf Ab BBB Stable Baa1 Neg Mads Rosendal UNDERWEIGHT Sognekraft As BBB Stable BBB Jakob Magnussen

19 Our coverage and shadow ratings 4 of 5

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

Danske Bank S&P Moody's Fitch Analyst(s) Recomm. Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating Outlook Solstad Offshore Asa BB- Stable B+ Øyvind Mossige Spar Nord Bank A/S BBB+ Stable T. Hovard / L. Holm Sparebank 1 Boligkreditt As A- Stable T. Hovard / L. Holm Sparebank 1 Nord Norge A2 A Stable T. Hovard / L. Holm UNDERWEIGHT Sparebank 1 Smn A2 A- Stable T. Hovard / L. Holm MARKETWEIGHT Sparebank 1 Sr-Bank Asa A2 A- Stable T. Hovard / L. Holm UNDERWEIGHT Sponda Oyj BBB- Stable Emil Hjalmarsson Ssab Ab BB- Stable Mads Rosendal St1 Nordic Oy BB Stable Jakob Magnussen Statkraft Sf A- Stable Aaa Stable Jakob Magnussen OVERWEIGHT Statnett Sf A+ Stable Wr Stable Jakob Magnussen MARKETWEIGHT Statoil Asa AA- Stable Aa2 Stable Jakob Magnussen UNDERWEIGHT Steen & Strom As BBB+ Stable Ola Heldal Stena Ab BB Stable B2 Stable Niklas Ripa MARKETWEIGHT Stockmann Oyj Abp B+ Stable Mads Rosendal Stolt-Nielsen Ltd BB+ Stable BB Bjørn Kristian Røed Stora Enso Oyj BB Stable Ba2 Stable WD Mads Rosendal MARKETWEIGHT Storebrand Bank Asa BBB+ Stable BBB+ Neg Nr T. Hovard / L. Holm Storebrand Livsforsikring As A- Neg Baa1 Stable T. Hovard / L. Holm Sunnfjord Energi As BBB- Stable BBB- Jakob Magnussen Suomen Hypoteekkiyhdistys A- Stable T. Hovard / L. Holm Svensk Fastighetsfinansiering Ab BBB Stable Louis Landeman Svenska Cellulosa Ab Sca A- Stable Baa1 Stable Mads Rosendal MARKETWEIGHT Svenska Handelsbanken Ab AA- Neg Aa3 AA- Stable T. Hovard / L. Holm MARKETWEIGHT Swedavia Ab A- Stable Gabriel Bergin Swedbank Ab A+ Neg A1 A+ Pos T. Hovard / L. Holm MARKETWEIGHT Swedish Match Ab BBB Stable Baa2 Stable Brian Børsting MARKETWEIGHT Sydbank A/S Baa T. Hovard / L. Holm OVERWEIGHT Saab Ab BBB+ Stable Wr Emil Hjalmarsson Tallink Grupp As BB Stable BB- Niklas Ripa Tdc A/S BBB Neg Baa3 Stable BBB Neg Ola Heldal MARKETWEIGHT Teekay Offshore Partners Lp BB- Stable B+ Bjørn Kristian Røed

20 Our coverage and shadow ratings 5 of 5

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

Danske Bank S&P Moody's Fitch Analyst(s) Recomm. Company Rating Outlook Sr. Unsec Rating Outlook Rating Outlook Rating Outlook Tele2 Ab BBB Stable Ola Heldal Telefonaktiebolaget Lm Ericsson BBB+ Stable Baa1 Stable BBB+ Stable Ola Heldal MARKETWEIGHT Telenor Asa A Stable A3 Stable Ola Heldal MARKETWEIGHT Teliasonera Ab A- Stable A3 Neg A- Stable Ola Heldal UNDERWEIGHT Teollisuuden Voima Oyj BBB Neg Wr BBB Stable Jakob Magnussen OVERWEIGHT Thon Holding As BBB+ Stable Ola Heldal Tine Sa BBB+ Stable Ola Heldal Upm-Kymmene Oyj BB+ Stable Ba1 Stable WD Mads Rosendal MARKET WEIGHT Vasakronan Ab A- Stable Emil Hjalmarsson Vattenfall Ab A- Stable A3 Stable A- Neg Jakob Magnussen MARKETWEIGHT Vestas Wind Systems A/S BBB- Pos Niklas Ripa OVERWEIGHT Victoria Park Ab BB- Stable B+ Louis Landeman Volvo Ab BBB Neg Baa2 Neg BBB Stable Mads Rosendal MARKETWEIGHT Wilh Wilhelmsen Asa BBB- Stable Bjørn Kristian Røed Wihlborgs Fastigheter Ab BB+ Stable BB Louis Landeman Yit Oyj B Stable Emil Hjalmarsson Source: Standard & Poor's, Moody's, Fitch, Danske Bank Markets

21 Fixed Income Credit Research team

Thomas Hovard, Chief Analyst Brian Børsting, Senior Analyst Ola Heldal, Senior Analyst Head of Credit Research Industrials TMT +45 45 12 85 05 +45 45 12 85 19 +47 85 40 84 33 [email protected] [email protected] [email protected]

Louis Landeman, Senior Analyst Lars Holm, Senior Analyst Sondre Dale Stormyr, Senior Analyst TMT, Industrials Financials Offshore Rigs +46 8 568 80524 +45 45 12 80 41 +47 85 40 70 70 [email protected] [email protected] [email protected]

Mads Rosendal, Analyst Gabriel Bergin, Analyst Henrik René Andresen, Senior Analyst Industrials, Pulp & Paper Strategy, Industrials Credit Portfolios +46 8 568 80594 +46 8 568 80602 +45 45 13 33 27 [email protected] [email protected] [email protected]

Jakob Magnussen, Senior Analyst Niklas Ripa, Senior Analyst Øyvind Mossige, Senior Analyst Utilities, Energy High Yield, Industrials Oil Services +45 45 12 85 03 +45 45 12 80 47 +47 85 40 54 91 [email protected] [email protected] [email protected]

Knut-Ivar Bakken, Senior Analyst Bjørn Kristian Røed, Senior Analyst Emil Hjalmarsson, Analyst Fish Farming Shipping Real Estate, Construction +47 85 40 70 74 +47 85 40 70 72 +46 8 568 80634 [email protected] [email protected] [email protected]

22 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 Ola Heldal, Analyst. 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. 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, 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.

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. 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

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