Standard & Poor’s (S&P) has affirmed Arion Bank’s credit rating at BBB-/A-3 and changed the outlook from stable to positive.
S&P´s outlook revision results mainly from their view that economic resilience in Iceland is likely to strengthen following significant progress toward lifting capital controls. The rating agency recently raised Iceland´s rating to BBB+.
In the view of S&P the agreement reached by all relevant parties on the composition of all three banks’ estates significantly reduces risk to the banks from the removal of capital controls. S&P therefore expects a better operating environment for banks and improved access to foreign funding markets. S&P expects Arion Bank´s capital position to strengthen.
Höskuldur H. Ólafsson, CEO of Arion Bank:
“Arion Bank´s credit rating continues to improve as it has done since the Bank first received a rating from S&P. This is due to the strengthening of both the Icelandic economy and Arion Bank´s financial position during this time. Arion Bank is financially strong and further positive rises in the Bank’s credit rating are dependent on continued positive development of the Icelandic economy, successful lifting of the capital controls and further rise of Iceland’s credit rating.”
For further information please contact Haraldur Gudni Eidsson of Arion Bank's Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444 7108.
