Fitch downgrades Kaupthing Banks's credit rating to A-

Fitch has today downgraded Kaupthing Bank's credit ratings. The
Bank's Long-term Issuer Default Rating (IDR) has been downgraded one
notch from A to A- and the Bank's Short-term IDR from F1 to F2. The
Bank's Individual rating B/C, Support 2 and Support Rating Floor BBB
remains unchanged. The long-term IDR was placed on negative outlook.
 
According to Fitch: The ratings of Kaupthing, while supported by the
geographic diversification of the bank's franchise and success in
turning around and integrating foreign subsidiaries, also reflect an
expectation of some deterioration in its core markets of Iceland and
the UK. The large liquidity portfolio maintained by the bank and
launch of retail deposits accounts in a large number of countries
should support the diversification of Kaupthing's funding sources.
 
Further information:
Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126 or Jónas
Sigurgeirsson - Chief Communications Officer, +354 444-6112
 
About Kaupthing Bank
Kaupthing Bank is a Northern European bank offering integrated
financial services to companies, institutional investors and
individuals. These services include corporate and retail banking,
investment banking, capital markets services, treasury services,
asset management and comprehensive wealth management for private
banking clients.
 
The Bank operates in all of the Nordic countries (Denmark, Finland,
Iceland, Norway and Sweden) and in 6 countries in mainland Europe
(the UK, Luxembourg, Belgium, Switzerland, Germany and the Isle of
Man), as well as the US, the Dubai International Financial Centre
(DIFC) and the Qatar Financial Centre (QFC). In Denmark, Kaupthing
Bank operates under the name FIH Erhvervsbank. As of 31 March 2008
the number of full-time equivalent positions was 3,324 at Kaupthing
Bank and its subsidiaries. www.kaupthing.com