- Iceland Foreign Currency Rating Lowered To BBB- On Mounting Debt Burden; Outlook Negative

On Nov. 24, 2008, Standard & Poor's Ratings Services lowered its long-term
foreign currency rating on Iceland to BBB- from BBB due to the sovereign's
mounting public sector debt burden. The Transfer & Convertibility assessment on
Iceland was also lowered to BBB- from A- in response to controls on the capital
account and some current account transactions, which have been in place since
early October. At the same time, Standard & Poor's affirmed its BBB+ long-term
local currency rating, and its A-3 foreign currency and A-2 local currency
short-term sovereign credit ratings. The outlook is negative. 

See attachment.