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
- FITCH Affirms Straumur-Burdaras at 'BBB-'; Outlook Stable.
| Source: Straumur-Burðarás Fjárfestingabanki hf.