HANSAPANK

ANNOUNCEMENT



S&P RATING



Standard & Poor’s today assigned its triple-‘B’ rating to the long-

term senior unsecured debt and counterparty credit ratings to

Hansabank. At the same time, the short-term senior unsecured debt

obligations of Hansabank were assigned an ‘A-2’ rating. These ratings

are the highest assigned to a commercial bank in the emerging markets

of Central and Eastern Europe. Standard & Poor’s also assigned its

triple-‘B’ rating to Hansabank's US$500 million euro medium-term note

program. Under this program, Hansabank's subsidiaries, Hansa Capital

AS and Hansabanka A/S, may also issue debt, which is guaranteed by

Hansabank. The outlook is stable.



Hansabank’s ratings reflect its strong ownership by Swedbank, dominant

position in the Estonian banking sector, strong capitalization and

management, and good levels of liquidity, profitability, and asset

quality. The ratings are constrained by the risks that Hansabank faces

from operating in a small and open economy that is vulnerable to

external shocks.



The stable outlook of the ratings reflects a continuation in the

improving financial profile of Hansabank through the strengthening of

the Estonian economy, together with more stringent credit-risk

procedures, which should offset the bank’s higher risk exposure to the

more vulnerable Latvian and Lithuanian economies, Standard & Poor’s

said.





Mart Tõevere

Investor relations

+372 6131 569