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S&P upgrades Landsbankinn's rating to BBB+/A-2 with a stable outlook

S&P Global Ratings has upgraded Landsbankinn's rating from BBB/A-2 to BBB+/A-2 and considers the outlook to be stable. S&P's issued its new rating on Landsbankinn today, 25 October 2017.

S&P's announcement mentions continued strong economic growth in Iceland, with improving economic resilience and falling private sector debt, partly offset by concerns for increasing economic imbalances. The revision of Landsbankinn's rating is further said to be a reflection of the Bank's very strong financial position which S&P does not expect to change, even though the Bank's efforts to optimise its capital structure are on-going. Considering the above factors, S&P raises its long-term rating on Landsbankinn to BBB+ and affirms the A-2 short-term rating. The stable outlook reflects S&P's expectation that economic development in Iceland will continue to remain supportive and that Landsbankinn will maintain very strong risk-adjusted capitalisation.

Lilja Björk Einarsdóttir, CEO of Landsbankinn: "This upgrade of Landsbankinn's rating by S&P reflects the strong standing of the Bank and of the economy in Iceland and is in line with the Bank's expectations. Landsbankinn's rating with S&P has now been raised by three notches over the past three years. A higher rating, alongside other factors, has led to the Bank achieving more favourable terms and having easier access to international financing in recent years."

S&P reports and announcements are accessible on the Landsbankinn website