September 25, 2018 / 7:48 AM / 8 months ago

Money laundering scandal puts Danske Bank rating under pressure, says DBRS

Workers are seen next to a "Danske Banks" sign in central Stockholm, Sweden April 7, 2016. Picture taken April 7, 2016.

COPENHAGEN (Reuters) - Weakening investor confidence in Danske Bank (DANSKE.CO) linked to allegations of money laundering via its Estonian business could hurt the bank’s credit rating, DBRS said on Tuesday.

“DBRS would expect Danske to receive a large fine given the prolonged period of time and the very high estimated amount of money transferred through the non-resident portfolio in Estonia,” the rating agency said in a statement.

“A substantial fine, especially if accompanied by weakening in investor confidence, could lead to negative rating pressure,” it said.

DBRS has an ‘A’-rating on Danske Bank’s long-term issuer rating.

Reporting by Jacob Gronholt-Pedersen; editing by John Stonestreet

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