Today, Rating and Investment Information (R&I), a Japan based rating agency has
assigned A+ credit rating to Kaupthing Bank. The rating outlook is stable.
In its announcement, R&I states that the rating reflects Kaupthing Bank's
strong position in the Icelandic market as well as the diversification of its
earnings and credit risks through the expansions into the U.K. and Scandinavian
countries. In addition its good profitability and sound asset quality are taken
into account. However, small size and volatility of the Icelandic economy and
financial market, the risks in the banking business in U.K., and the latent
risks associated with the rapid business expansion are also taken into
consideration.
R&I also states that although the bank has a small deposit base and high
reliance on wholesale funding, it has during the past year substantially
reduced its refinancing risk by diversifying funding sources, lengthening
funding tenures and implementing conservative liquidity controls.
R&I is the third rating agency to rate Kaupthing Bank, after Moody's Investor
Service and Fitch Ratings which assigned Kaupthing Bank the long-term rating
Aa3 and A respectively.
"The diversification of funding sources continues to be a key strategic
priority for Kaupthing Bank and the Asian market will be a fundamental part of
this strategy. We believe that having a strong rating from R&I, which is widely
acknowledged in the Asian financial markets, will certainly enhance our ability
to serve our current investor base and attract new investors" says Gudni
Adalsteinsson, Chief Treasurer of Kaupthing Bank.
R&I news release is attached.
For further information please contact:
Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126
Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112
Rating and Investment Information (R&I)
R&I was established in 1998 by a merger of Nippon Investors Service (NIS) and
Japan Bond Research Institute (JBRI). JBRI started its rating activity as the
first rating agency in Japan in 1977, R&I has been providing more ratings than
any other credit rating agency in Japan. As of April 30, 2007, R&I had 681
issuer ratings with respect to Japanese issuers. In addition to its prominence
in the capital markets for its ratings of Japanese issuers, R&I rates
securities and issuers on a global basis. For additional information about R&I
and R&I's credit ratings, please visit http://www.r-i.co.jp/
