September 25, 2018 / 7:45 AM / a month ago

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

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.

FILE PHOTO: Danske Bank sign is seen at the bank's Estonian branch in Tallinn, Estonia August 3, 2018. REUTERS/Ints Kalnins/File Photo

“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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