23. November 2007
Standard & Poor rating for Glitnir bank unchanged
Credit rating agency Standard & Poor revised its outlook for Iceland from 'stable' to 'negative' this week. It cited the increased risk of a hard landing for the Icelandic economy.The credit ratings, however, remain unchanged with A+/A-1 foreign currency and AA/A-1+ local currency issuer affirmed.
The rating for Nordic bank Glitnir is also unaffected by the announcement. Standard & Poor concluded that, 'the ratings on [Glitnir] are underpinned by its strong domestic franchise, as well as by geographic diversification through its growing presence in Norway, Sweden, and Finland'.
S&P recognised 'the bank's consistently high profitability and current good asset quality, both in Iceland and elsewhere. The ratings continue to reflect S&P's view that Glitnir Bank's liquidity management is prudent and transparent, even though the bank remains highly reliant on wholesale foreign currency funding'.
S&P went on to say that, 'Given the bank's increased geographical and product diversification, the ratings reflect our expectation that it should be able to maintain profitability at comfortable levels, despite Iceland's challenging economic environment and the potential for higher loan losses and lower financial gains.'
Glitnir bank is a leading niche player in three global industry segments: seafood / food, sustainable energy and offshore services vessels, as well as offering universal banking and financial services. The Glitnir group is based in Iceland and Norway but also has operations in Sweden, Denmark, Finland, Luxembourg, Russia, US, Canada, China, the UK and the US.
For more information on Glitnir bank visit www.glitnirbank.com
Bjørn Richard Johansen
Managing Director, Corporate Communications, Glitnir
Tel: +47-47 800 100