Fitch Ratings has today placed Kaupthing Bank's, Glitnir Banki's, and Landsbanki Islands' Long- and Short-term Issuer Default ratings (IDRs), senior and subordinated debt ratings and Individual ratings on Rating Watch Negative (RWN). The Support ratings of '2' and Support Rating Floors of 'BBB' have been affirmed. While Fitch believes that the three banks' liquidity is currently sufficient, diminishing confidence in the sector has increased the risk of unanticipated calls on liquidity while severely restricting funding options. Moreover, the recent sharp depreciation of the ISK and the heightened risk of a 'hard landing' for the Icelandic economy are likely to adversely impact asset quality and performance. Nevertheless, Fitch notes that the business fundamentals of the three banks currently remain sound. Liquidity appears comfortable and the banks are currently able to operate without recourse to the capital markets for some months to come. Further information: Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126 Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112 About Kaupthing Bank Kaupthing Bank offers comprehensive commercial and investment banking services to individuals, companies and institutional investors. The Bank is a leading player in all the main areas of the Icelandic financial market, and in addition to Iceland, the Bank's key markets are Denmark and the United Kingdom. The Bank focuses on the growth and development of its international activities and aims to be one of the leading investment banks in northern Europe. Kaupthing Bank operates in thirteen countries with its headquarters located in Reykjavík. The Bank's main subsidiaries are FIH Erhvervsbank in Denmark, Kaupthing Singer & Friedlander in the United Kingdom, Kaupthing Bank Sverige, Kaupthing Bank Luxembourg, Kaupthing Bank in Finland, Norvestia Oyj in Finland, Kaupthing New York, Kaupthing Switzerland, Kaupthing Bank Belgium and Kaupthing Bank Norge in Norway. The Bank also has activities in Isle of Man, the Dubai International Financial Centre (DIFC) and the Qatar Financial Centre (QFC). As of 31 December 2007 the number of full-time equivalent positions was 3,334 at Kaupthing Bank and its subsidiaries. www.kaupthing.com
Fitch puts Kaupthing, Glitnir and Landsbanki on rating watch negative
| Source: Kaupthing Bank