Standard & Poor´s Lowers HFF´s Credit Rating - CreditWatch with Negative Implications

On September 29, 2008, Standard & Poor´s Rating Services lowered the Housing
Financing Fund´s (HFF's) long-term local currency rating to 'A' from 'A+'.
HFF´s long-term foreign currency rating was also lowered to 'A-' from 'A'. The
long-term ratings were placed on CreditWatch with negative implications. 
The short-term foreign currency rating was lowered to 'A-2' from 'A-1' and the
short-term local currency rating 'A-1' was affirmed. 

These changes in HFF´s ratings were made following a change in ratings for the
Republic of Iceland on support for Glitnir Bank. 

See attachment.