Moody's Investors Service today downgraded Glitnir's long-term rating to A2, BFSR to C- with a stable outlook

Reykjavik, 28 February 2008 - Moody's Investors Service today
downgraded Glitnir Bank's financial strength rating ("BFSR") to C-
from C and its long-term foreign and local currency deposit ratings
to A2 from Aa3. The Bank's Prime-1 short-term rating was affirmed.
The outlook on all ratings is stable. These rating actions conclude
the review for possible downgrade initiated on 30 January 2008.

In less than a year Moody's has changed Glitnir's ratings on four
occasions:
1.      February 2007: BFSR downgraded from C+ (negative outlook) to
C (stable outlook).
2.      February 2007: Long-term rating upgraded to Aaa from A1 due
to changes in Moody's methodology.
3.      April 2007: Long-term rating downgraded to Aa3 from Aaa due
to refinement in Moody's methodology
4.      February 2008: BFSR from C to C- and long-term rating
downgraded from Aa3 to A2."We feel that  the long-term  credit rating  of A2  is tolerable  and
trust that  the  last  year's rollercoaster  ride  with  our  Moody's
ratings is over. Our rating has changed  from A1 to Aaa to Aa3 to  A2
in the space of a year and  there is a clear need for some  stability
from Moody's in relation to our ratings," says Ingvar H.  Ragnarsson,
Managing Director of Treasury at Glitnir. "As the markets have always
treated Glitnir as a single A credit I would expect that it will  not
be greatly surprised by this change."

We would like to point out the in their Moody's states the  following
about Glitnir's liquidity profile:
 After carrying out comprehensive stress tests, Moody's has concluded
that Glitnir's  liquidity profile  is sound.  Although the  bank  has
large repayments  due in  2008, its  alternative liquidity,  both  on
balance sheet  and in  the form  of committed  back-up lines,  should
cover these, said Kimmo Rama, lead analyst for Glitnir at Moody's.

This reflects the fact  that Glitnir is in  a strong position with  a
comfortable  liquidity  position  of  more  than  EUR  7  billion  of
immediately available funds to meet less than EUR 2.5 bn repayment in
2008".


On the loan-portfolio Moody's furthermore states:

Moody's conducted stress tests on Glitnir's loan portfolio subjecting
it to different default, asset growth and revenue assumptions as well
as scenarios in  which problem loans  increased sharply. These  tests
showed that Glitnir can withstand significant downward pressure."Glitnir  is  fundamentally  well  positioned",  says  Alexander   K.
Gudmundsson, CFO of Glitnir. "Glitnir's underlying country risk is to
a large  degree related  to  two of  the world's  richest  economies,
Iceland and  Norway. The  economies of  both countries  are based  on
resilient sectors such as energy (oil, geothermal), seafood, aluminum
and tourism, which are  not directly affected  by the current  credit
and equity market turmoil. Furthermore Glitnir has a leading position
within its niche  sectors: Seafood; Sustainable  Energy and  Offshore
Service Vessels. Sectors that are not affected by the market  turmoil
and even negatively correlated to  it. Glitnir will further  increase
its emphasis on these  fast growing sectors in  light of the  current
market development".


For further information contact:

Alexander K. Gudmundsson, Executive Vice President, Finance Division
+ 354 440 4500, e-mail: alexander.gudmundsson@glitnir.is

Bjørn Richard Johansen, Managing Director, Corporate Communication,
mobile +47-47 800 100,
e-mail: brj@glitnir.no

Vala Pálsdóttir, Head of IR, mobile: +354 440 4989, mobile: +354 844
4989,
e-mail: vala.palsdottir@glitnir.is.



About Glitnir Bank
Glitnir is a Nordic bank, headquartered in Iceland, with operations
in 11 countries.  Our home markets are Iceland and Norway where we
offer a broad range of financial services, including corporate
banking, investment banking, capital markets, investment management
and retail banking.  Outside of our home markets we have operations
in Finland, Sweden, UK, Luxembourg, Denmark, US, Canada, China and
Russia. We drive our international expansion, based on two
specialized industry sectors: seafood and sustainable energy, where
we have developed significant industry expertise built on our
Icelandic and Norwegian heritage. Our shares are listed on OMX in
Iceland under the symbol, GLB.