Today, Moody's Investors Service has lowered the ratings of 44 banks, including
Landsbanki, following the refinement of its bank rating methodology which
incorporates joint default analysis (JDA). The banks were placed on review for
possible downgrade on 3 April 2007.
Landsbanki's ratings were lowered by 3 notches to Aa3 from Aaa, with Stable
outlook. Landsbanki received a 5 notch upgrade, from A2 to Aaa, when Moody's
announced its new JDA rating methodology on 24 February 2007. At the same time,
the outlook for Landsbanki's financial strength rating was changed to stable
from negative. However, Landsbanki's net effect of the revised JDA methodology
is a 2 notch increase in its long-term rating from A2 to Aa3.
Please find enclosed the Moody's press release.
For further information:
Brynjólfur Helgason, MD Int.Banking, tel. +354 820 6340. Sigurjón Th. Árnason,
CEO, tel. +354 410-4009 / +354 898 0177 and Halldór J. Kristjánsson, CEO, tel.
+354 410 4015 / +354 820 6399.
Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269 7204 /
mob: +44 7711 264 157.
