The international rating agency Standard and Poor’s (S&P’s) has raised both the long and short term rating grades of Landsbankinn from BB+/B to BBB-/A-3 and deems the outlook to be positive. S&P's issued its rating of Landsbankinn's creditworthiness as obligor today, 21 July 2015.
S&P's announcement states that economic imbalance has continued to decrease in Iceland and that stability is expected to improve in coming years. The upgrade of Landsbankinn's rating reflects S&P's opinion that the operating environment of the Icelandic banking system has improved, risk decreased and that lower credit losses can be expected going forward.
According to S&P, its rating of Landsbankinn reflects the Bank's adequate business position, strong capital and earnings and adequate risk position. In S&P's estimation, the Bank's liquidity position in both ISK and foreign currency is strong. This new credit rating further reflects the agency's expectation that Landsbankinn will maintain its strong balance sheet.
Steinthór Pálsson, CEO of Landsbankinn: "The new rating from Standard & Poor’s is pleasing news and in line with expectations, due to, amongst other things, the improved sovereign rating grade. This evaluation shows that the Bank's position is strong and that it is on the right track. Achieving an investment grade boosts trust in Landsbankinn in international markets and facilitates the Bank's financing in the near future, both in domestic and international markets."
For further information, contact:
Hanna K. Thoroddsen, tel. (+354) 410 7328, hanna.k.thoroddsen@landsbankinn.is