- FITCH Affirms Straumur-Burdaras at 'BBB-'; Outlook Stable.

Fitch Ratings has today affirmed Straumur-Burdaras Investment Bank's (Straumur)
ratings at Long-term Issuer Default (IDR) 'BBB-', Short-term IDR 'F3',
Individual 'C/D' and Support '3'. The Outlook for the Long-term IDR is Stable. 

In its report Fitch states that the ratings reflect Straumur's strong capital
base, the rapid growth of its more sustainable revenue streams, the growing
geographic diversification of its assets and revenue, and that risk management
infrastructure and reporting has been significantly strengthened recently. 

The report continues to say that the ratings also mirror the Straumur's
relatively short track record in its current form, still large equity
exposures, concentration in its balance sheet and integration risk arising from
overseas expansion. Fitch acknowledges improvements in the bank's franchise and
risk profile, but says that these improvements still have to translate into a
stronger balance sheet and underlying performance. The agency considers that
further progress would support a positive rating action, but will monitor the
impact of the current difficult market environment, including in the wholesale
funding markets, on the bank. 

Fitch concludes by saying that Straumur's liquidity is sound and that the
bank's large capital base gives it significant flexibility for future planned
growth. 

For further information contact:

Georg Andersen, Director of Investor Relations.

Phone: +354 585 6707

Mobile: +354 858 6707

georg@straumur.net