Islandsbanki hf.: S&P upgrades Íslandsbanki to BB

International credit rating agency S&P Global Ratings (S&P) upgraded Íslandsbanki's credit ratings from BBB/A-2 to BBB+/A-2 today, with a stable outlook.  

The upgrade is based largely on an improving operating environment for the Icelandic banking system following the liberalisation of capital controls and declining private sector debt. Because of this, S&P is of the view that the Icelandic banking system has strengthened and Íslandsbanki's long-term risk-adjusted capital position has improved.

The stable outlook on the Bank's ratings reflect S&P's expectation that the Icelandic economy will remain resilient and that the Bank will maintain a strong capital position in coming years, even while it continues to optimise its capital structure.

Jón Guðni Ómarsson, Chief Financial Officer:

"It is gratifying to see the Bank's credit ratings improve and to see growing confidence in the Icelandic economy and the financial system. The rating upgrade is in line with favourable developments of the Bank's secondary spreads and increased interest from foreign investors in the Bank's bonds in the past few months, which is of benefit to the Bank's customers. The upgrade is also a clear reflection of the successful revitalisation of the Bank and the Icelandic economy over the past few years."

For further information:

• Treasury - Johann Otto Wathne, johann.wathne@islandsbanki.is, tel +354 844 4607.
• Public Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel: +354 440 4005.