Íslandsbanki's ratings reflect its position as a leading domestic universal bank in Iceland, and good capitalisation, according to a rating assigned to Íslandsbanki by Fitch today.
Fitch rates Íslandsbanki as BBB-/F3 with stable outlook. This is a satisfactory result, especially in light of the fact that Íslandsbanki is now the first Bank to be assigned an investment grade since 2008.
In their research update, Fitch note that restructuring of a significant part of the loan book since 2008 has largely been completed, and Fitch believes the bank has made conservative assessments of its customers' ability to service the written-down loans.
Fitch also note that significant foreign currency outflow when capital controls are lifted are a potential risk for the whole banking system, although Fitch believes foreign currency mismatches are well managed by Íslandsbanki.
Birna Einarsdóttir, CEO of Íslandsbanki:
We are very proud to be the first bank in Iceland since 2008 to be assigned an investment grade . This will increase our access to financing, both in Iceland but not last abroad. This will increase our access to both internal and foreign funding A broader potential investor base can affect both demand and pricing of the Bank's bonds. With better terms abroad the Bank can better support customers that need foreign currency funding
This is the result of a great work and dedication of the Bank's employees that aim at building a great company that is noticed for its successes.
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For further information:
Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and tel: +354 440 4752. Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel: +354 440 3678.
Fitch Rating Action Commentary http://hugin.info/150077/R/1917450/685946.pdf
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