Moody's Investors Service today downgraded the long-term foreign and local
currency deposit ratings of Landsbanki Islands hf (“Landsbanki”) to A2 from Aa3
and its bank financial strength rating (“BFSR”) to C- from C. The bank's
Prime-1 short-term rating was affirmed, which is the highest rating given. The
outlook on all ratings is stable. These rating actions conclude the review for
possible downgrade initiated on 30 January 2008.
This is the latest development in a series of Moody's rating actions in the
past 12 months which have moved Landsbanki's rating from A2 up to Aaa, down to
Aa3 and now again down to A2. In February 2007, Moody's introduced a new ‘Joint
Default Analysis' (JDA) methodology and upgraded a host of banks, including all
the Icelandic banks to Aaa, the same rating as the Icelandic Sovereign. After
receiving harsh criticism from the credit analyst community and market place,
Moody's later modified its JDA methodology for the global banking sector,
resulting in an Aa3 rating for Landsbanki in April 2007. On the back of today's
rating action, Landsbanki has returned to its A2 rating.
For further information on the rating action, please refer to the attached
press release from Moody's.
For further information please contact:
Landsbanki's CEOs Sigurjón Th. Árnason, tel. +354 410-4009 / +354 898 0177 and
Halldór J. Kristjánsson, tel. +354 410 4015 / +354 820 6399 or Brynjólfur
Helgason, Alternate CEO and MD International Banking.
About Landsbanki
Landsbanki is a growing European bank with total assets of ISK 3,058 billion
(EUR 33.4 bn) at year-end 2007 and a market capitalisation of ISK 301 billion
(EUR 3.05 bn) as of 28 February 2008. Through its extensive distribution
network of 2,640employees in 17 countries, Landsbanki is set to deliver
targeted financial services based on local expertise for mid-cap corporates in
Europe. Landsbanki provides retail and corporate banking, investment banking,
capital markets services, asset management and wealth management for private
banking clients. Landsbanki's unique product line includes access to both debt
and equity markets and its research department is among the most comprehensive
in Europe, including some 100 analysts covering close to 950 European stocks.
The market leader in the Icelandic financial service sector, Landsbanki's
growth in recent years has been primarily organic, based upon smaller,
strategically acquired platforms in the UK, Ireland and Continental Europe.
Most recently, the bank acquired the securities broker and investment bank
Bridgewell in the UK.
Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the
OMX Nordic Exchange Iceland under the ticker LAIS. Landsbanki is rated by
Moody's (A2 / P-1 / C- / Stable) and Fitch (A / F1 / B/C / Stable).
