The international credit rating agency Moody's Investors Service has downgraded Kaupthing Banks' credit rating. The Bank's long-term deposits and senior debt ratings in local and foreign currencies have been downgraded from Aaa, the highest possible rating assigned by Moody's, to Aa3. This change comes in the wake of a review of Moody's "JDA" methodology. The Bank's ratings for short-term obligations in local and foreign currencies, P-1, which is the highest rating given by Moody's, remains unchanged. The Bank's rating for financial strength, C, also remains unchanged. The downgrade in credit rating comes in the wake of an upgrade of the credit rating on 23 February of this year, which increased Moody's credit rating for Kaupthing Bank by four credit rating categories. This was based on Moody's new joint default analysis (JDA) methodology, which takes into account potential sources of external support for banks. Following a criticism that was levelled at Moody's JDA methodology, Moody's credit rating for Kaupthing, and many other banks, has been revised with the aforementioned results. Further information: Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126 Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112