Swedbank AB still swims in the troubling waters facing high risks in Latvia and Ukraine despite economic improvements there, and credit losses in Sweden may rise from current low levels as interest rates rise and stimulus measures are withdrawn over the next year, the bank's chief risk officer revealed Tuesday.

In an attempt to shore up its balance sheet, hit hard by recession and rising levels of bad loans, Sweden's Swedbank Monday surprisingly unveiled a fully underwritten 15 billion Swedish crown (or $2.1 billion) rights issue.