Fitch downgrades Straumur

05 November 2008

Fitch Ratings has today downgraded Straumur-Burdaras Investment Bank
hf. (Straumur)

Straumur's ratings are as follows:

Straumur's ratings are as follows:
Long-term IDR: downgraded to 'B' from 'BB-' (BB minus); Rating Watch
changed to Negative from Evolving
Short-term IDR 'B'; Rating Watch changed to Negative from Evolving
Support rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor' Individual rating:
downgraded to 'D/E' from 'D'; Rating Watch changed to Negative from
Evolving
Senior debt: downgraded to 'B' from 'BB-' (BB minus); Rating Watch
changed to Negative from Evolving; Recovery Rating of 'RR4' assigned
Subordinated debt: downgraded to 'CCC+' from 'B'; Rating Watch
changed to Negative from Evolving; Recovery Rating of 'RR6' assigned

For further information contact:
Georg Andersen, Senior Vice President
Head of Corporate Communications
Tel: +354 858 6707
E-mail: georg.andersen@straumur.net

Ed Gasgoigne-Pees
Managing Director, Financial Dynamics
Tel: +44 (0)20 7269 7132
E-mail: ed.gascoigne-pees@fd.com

Felicity Murdoch
Associate Vice President, Financial Dynamics
Tel: +44 (0)20 7269 7243
E-mail: felicity.murdoch@fd.com