Weekly Credit Update. Headlines. Market commentary. Indices continued to tighten over the week.

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1 Investment Research General Market Conditions 30 May 2014 Weekly Credit Update Headlines Indices continued to tighten over the week. Moody s changed its outlook on 81 European banks to Negative. Getinge cancelled its capital markets day with two days notice. The primary market remains busy. Market commentary Overall market sentiment was unchanged this week and volatility remains relatively modest in the European credit markets. We continue to believe this is driven by underlying bullish market sentiment, which is partially pared by a general feeling that spreads are at tight levels especially in the investment-grade segment. This is also manifested in a strong performance in the primary issuance markets, where investors can satisfy their risk appetite via new issue premiums. The itraxx main index tightened by 2bp to 67bp over the week. The hunt for yield among investors continued and, subsequently, the itraxx Crossover tightened by 10bp to 258bp over the week. Moody s has changed its outlook on 81 long-term ratings on European banks to Negative due to the recent adoption of the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (SRM) regulation in the EU. The Negative outlook reflects Moody s view that, with the legislation underlying the new resolution framework now in place and the explicit inclusion of burden sharing with unsecured creditors as a means of reducing the public cost of bank resolutions, the balance of risk for banks senior unsecured creditors has shifted to the downside. While Moody s support assessments are unchanged for now, the probability has risen that they will be revised downwards to reflect the new framework. Sweden s Getinge decided to cancel its capital markets day with just two days notice due to recent communication with the FDA. This adds to the uncertainty that additional problems with its quality management systems could arise. Considering Getinge s high leverage, we believe it has limited headroom to take on additional debt. Consequently, we maintain our negative credit outlook on our estimated BBB- rating. Contents Market commentary 1 Selected charts 3 Recently published research 4 Official and shadow ratings 8 itraxx Europe (investment grade) Source: Bloomberg, Danske Bank Markets itraxx Crossover (high yield) Source: Bloomberg, Danske Bank Markets The primary market continues its high activity level with issuance from almost all types of capital structure and credit quality. Selected new issues during the week Name Rating Coupon Maturity Currency Size Spread* Volkswagen Fin Ser. A3/A- 2.25% 3Y NOK 500m +20 Smurfit Kappa Ba2/BB+ 3.25% 7Y EUR 500m +247 St1 Nordic NR 4.125% 5Y EUR 100m +340 Olympic Shipping NR FRN 5Y NOK 500m +500 Note: Ratings are senior unsecured ratings from Moody's and S&P * Mid-swaps for fixed, discount margin for floating Source: Bloomberg, Danske Bank Markets Senior Analyst Brian Børsting brbr@danskebank.com Important disclosures and certifications are contained from page 8 of this report.

2 EUR investment-grade cash spreads (ASW) EUR high-yield cash spreads (ASW) itraxx (Europe) vs CDX (US) Investment grade corporate yields Nordic corporates vs itraxx Nordic banks 5Y CDS spreads 2 30 May

3 Corporate BBB bond yield vs EuroSTOXX dividend yield 3M Libor OIS spreads Financials spread vs non-financials (Industrials), A-rated 3 30 May

4 Recently published research Credit Update Nykredit Bank Q1 14 HOLD Once again, Nykredit Bank managed only to break even, as value adjustments on interest swap contracts continued to be a drag on earnings. We expect such value adjustments to continue bringing volatility over the coming period, which together with reduced capital ratios makes Nykredit Bank less attractive despite relatively favourable pricing. We maintain our HOLD recommendation. Credit Update A. P. Moller - Maersk Q1 14 BUY A. P. Moller - Maersk reported a solid first quarter and upgraded its guidance for 2014 in connection with the Q1 report. Maersk Line continues to perform strongly. We continue to see credit metrics as strong for the current BBB+/S rating but due to high outstanding capex, significant exposure to shipping and a likely higher payout ratio to shareholders, we do not expect a rating upgrade. However, we continue to find the bond valuation attractive and maintain our Buy recommendation. Credit Update Olav Thon Eiendomsselskab ASA Q1 14 Olav Thon Eiendomsselskap (OLT) again reported strong quarterly results, with rental income of NOK493m and cash flow from operations of NOK230m. Credit metrics are stable with LTV at 47%, equity share close to 40% and EBITDA interest coverage above 2.5x. With modest development activity and unused credit facilities of NOK5,460m, OLT's credit profile remains strong. We reiterate our BBB+ rating with a stable outlook on the name May

5 Ratings from Standard & Poor s, Moody s and 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 Akelius Residential Ab BB+ Pos BB Louis Landeman Ambu A/S BBB- Stable Jakob Magnussen Ap Moeller - Maersk A/S BBB+ Stable Baa1 Stable Brian Børsting BUY Arla Foods Amba BBB+ Stable Mads Rosendal Atlas Copco Ab A Stable A2 Stable Mads Rosendal SELL Avinor As AA- Stable A1 Stable Åse Haagensen HOLD Bank 1 Oslo Akershus As BBB+ Stable T. Hovard / L. Holm Bwg Homes Asa BB Stable BB- Nils Aspeli Cargotec Oyj BBB- Stable Kasper F. Larsen Carlsberg Breweries A/S Baa2 Stable BBB Stable Brian Børsting SELL Cermaq Asa BB Stable Knut-Ivar Bakken Color Group As BB- Stable B+ Kasper F. Larsen Danske Bank A/S A Neg Baa1 Pos A Stable Dlg Finance As BB- Stable Mads Rosendal Dfds A/S BB+ Stable Kasper F. Larsen Dna Ltd BBB- Stable Kasper F. Larsen Dnb Bank Asa A+ Stable A1 Neg T. Hovard / L. Holm HOLD Dong Energy A/S BBB+ Stable Baa1 Stable BBB+ Stable Jakob Magnussen BUY Dsv A/S BBB Stable Brian Børsting Eg Holding B Stable Jakob Magnussen Eika Boligkreditt As A- Stable Nils Aspeli Eika Gruppen As BBB Stable Nils Aspeli Electrolux Ab BBB+ Neg Wr WD Brian Børsting HOLD Elisa Oyj BBB Pos Baa2 Stable Kasper F. Larsen BUY Entra Eiendom As A- Stable Nils Aspeli Finnair Oyj BB Stable Brian Børsting Fingrid Oyj AA- Neg A1 Stable A+ Stable Jakob Magnussen BUY Fortum Oyj A- Neg A2 Neg A- Neg Jakob Magnussen SELL Fred Olsen Energy Asa BB+ Stable Sondre Stormyr G4S Plc BBB- Stable Brian Børsting BUY Getinge Ab BBB- Neg Louis Landeman Helgeland Sparebank Baa2 Neg T. Hovard / L. Holm Hemso Fastighets Ab BBB+ Stable Wiveca Swarting Husqvarna Ab BBB- Stable Louis Landeman Investor Ab AA- Stable A1 Stable Brian Børsting BUY Iss A/S BBB- Stable Baa3 Stable Brian Børsting HOLD Jernhusen Ab A- Stable Gabriel Bergin J Lauritzen A/S B Stable B- Åse Haagensen Jyske Bank A/S A- Stable Baa1 Neg Thomas M. Hovard BUY Kesko Oyj BBB Stable Mads Rosendal Klaveness Ship Holding As BB- Stable B+ Bjørn Kristian Røed Meda Ab BB Pos Louis Landeman Metsa Board Oyj B+ Stable B2 Pos Mads Rosendal Metso Oyj BBB Stable Baa2 Neg Mads Rosendal BUY Mjolby-Svartadalen Energi Ab BBB+ Watch Louis Landeman Ncc Ab BBB- Stable Louis Landeman Neste Oil Oyj BBB- Stable Jakob Magnussen HOLD Nokia Oyj BB Pos Ba2 Stable BB Stable Kasper F. Larsen HOLD Nokian Renkaat Oyj A- Stable Jakob Magnussen Nordea Bank Ab AA- Neg Aa3 Neg AA- Stable T. Hovard / L. Holm SELL North Atlantic Drilling Ltd BB Stable BB- Sondre Stormyr Norwegian Property Asa BBB- Stable Nils Aspeli Nykredit Bank A/S A+ Neg Baa2U Stable A Stable T. Hovard / L. Holm BUY Odfjell Se B+ Stable B Bjørn Kristian Røed Olav Thon Eiendomsselskap Asa BBB+ Stable Nils Aspeli Olympic Shipping As B+ Stable B Åse Haagensen Outokumpu Oyj B- Pos Mads Rosendal Orkla Asa BBB+ Pos Nils Aspeli Pohjola Bank Plc AA- Aa3 Neg A+ Stable T. Hovard / L. Holm SELL Postnord Ab BBB+ Stable Gabriel Bergin Prosafe Se BB Stable Åse Haagensen Ramirent Oyj BB+ Stable Brian Børsting Saab Ab BBB+ Stable Wr Wiveca Swarting Sampo Baa2 Stable T. Hovard / L. Holm HOLD Sandnes Sparebank BBB+ Stable T. Hovard / L. Holm HOLD Sandvik Ab BBB Stable Mads Rosendal HOLD Sas Ab B- Stable Wr Pos Brian Børsting Sbab Bank Ab A Neg A2 T. Hovard / L. Holm HOLD Scania Ab A- Pos Mads Rosendal HOLD Schibsted Asa BBB Stable Nils Aspeli Seadrill Ltd BB+ Stable BB Sondre Stormyr Source: Standard & Poor s, Moody s, Fitch, Danske Bank Markets 5 30 May

6 Ratings from Standard & Poor s, Moody s and 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 Securitas Ab BBB Stable Wr Brian Børsting HOLD Skandinaviska Enskilda Banken Ab A+ Neg A1 Neg A+ Stable T. Hovard / L. Holm BUY Skanska Ab BBB+ Stable Louis Landeman Skf Ab BBB+ Stable Baa1 Stable Mads Rosendal BUY Solstad Offshore Asa BB- Stable B+ Åse Haagensen Sparebank 1 Nord Norge A2 Neg A Stable T. Hovard / L. Holm HOLD Sparebank 1 Smn A2 Neg A- Stable T. Hovard / L. Holm HOLD Sparebank 1 Sr Bank Asa A2 Neg A- Stable T. Hovard / L. Holm HOLD Spar Nord Bank A/S BBB+ Stable T. Hovard / L. Holm Sponda Oyj BBB- Stable Louis Landeman Statkraft Sf A- Stable Aaa Stable Jakob Magnussen BUY Statnett Sf A+ Stable Wr Stable Jakob Magnussen HOLD Statoil Asa AA- Stable Aa2 Stable Jakob Magnussen SELL Stena Ab BB Stable B2 Stable Brian Børsting BUY Stockmann Oyj Abp BB- Neg Mads Rosendal Stolt-Nielsen Ltd BB+ Stable BB Bjørn Kristian Røed Stora Enso Oyj BB Stable Ba2 Neg BB- Stable Mads Rosendal HOLD Suomen Hypoteekkiyhdistys A- Stable T. Hovard / L. Holm Swedavia Ab A- Stable Gabriel Bergin Swedbank Ab A+ Neg A1 Neg A+ Stable T. Hovard / L. Holm BUY Swedish Match Ab BBB Stable Baa2 Stable Brian Børsting HOLD Svenska Cellulosa Ab Sca A- Stable Baa1 Stable Mads Rosendal SELL Svensk Fastighetsfinansiering Ab BBB Stable Louis Landeman Svenska Handelsbanken Ab AA- Neg Aa3 Neg AA- Stable T. Hovard / L. Holm HOLD Sydbank A/S Baa1 Neg T. Hovard / L. Holm HOLD Tallink Group As BB Stable BB- Jakob Magnussen Talvivaara Mining Co Plc C Mads Rosendal Tdc A/S BBB Stable Baa2 Stable BBB Stable Kasper F. Larsen HOLD Teekay Offshore Partners Lp BB- Stable B+ Kasper F. Larsen Tele2 Ab BBB Stable Kasper F. Larsen Telefonaktiebolaget Lm Ericsson BBB+ Neg Baa1 Stable BBB+ Neg Kasper F. Larsen HOLD Telenor Asa A- Pos A3 Stable Kasper F. Larsen HOLD Teliasonera Ab A- Stable A3 Stable A- Stable Kasper F. Larsen SELL Teollisuuden Voima Oyj BBB Neg Wr BBB Stable Jakob Magnussen BUY Thon Holding As BBB+ Stable Nils Aspeli Upm-Kymmene Oyj BB Pos Ba1 Stable BB Stable Mads Rosendal HOLD Vasakronan Ab BBB+ Stable Louis Landeman Vattenfall Ab A- Stable A3 Stable A- Neg Jakob Magnussen HOLD Vestas Wind Systems A/S BBB- Pos Kasper F. Larsen BUY Volvo Ab BBB Neg Baa2 Neg BBB Stable Mads Rosendal BUY Wilh Wilhelmsen Asa BBB- Stable Bjørn Kristian Røed Yit Oyj B+ Neg Louis Landeman Source: Standard & Poor s, Moody s, Fitch, Danske Bank Markets 6 30 May

7 Fixed Income Credit Research Thomas Hovard Head of Credit Research (+45) Louis Landeman TMT, Industrials (+46) llan@danskebank.com Åse Haagensen High Yield, Industrials (+47) ha@danskebank.com Mads Rosendal Industrials, Pulp & Paper (+45) madro@danskebank.com Jakob Magnussen Utilities, Energy (+45) jakja@danskebank.com Brian Børsting Industrials (+45) brbr@danskebank.com Lars Holm Financials (+45) laho@danskebank.dk Gabriel Bergin Strategy, Industrials (+46) gabe@danskebank.com Kasper From Larsen High Yield, TMT (+45) kasla@danskebank.com Bjørn Kristian Røed Shipping (+47) bred@danskebank.com Nils Henrik Aspeli Real Estate, Industrials (+47) nas@danskebank.com Wiveca Swarting Real Estate, Construction (+46) wsw@danskebank.com Sondre Dale Stormyr Offshore rigs (+47) sost@danskebank.com Henrik René Andresen Credit Portfolios (+45) hena@danskebank.com Find the latest Credit Research Danske Bank Markets: Bloomberg: DRCR<GO> 7 30 May

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