Fitch puts Kaupthing, Glitnir and Landsbanki on rating watch negative

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