Standard & Poor's Ratings Services has raised its long-term and short-term rating on Íslandsbanki to BBB-/A-3. The outlook on Íslandsbanki is stable.
This upgrade reflects S&P's view of the improving operating conditions for Íslandsbanki as well as other commercial banks in Iceland.
The ratings on Íslandsbanki reflect its strong capital and earnings and strong liquidity according to S&P.
The rating action follows S&P's review of the Icelandic banking system, which incorporates their opinion that economic risks have reduced, given expectations of continued credit improvement and greater stability in the future. S&P now anticipate a limited future impact on Íslandsbanki's credit profiles from the 2008 financial crisis. S&P also considered the upgrade of the sovereign of Iceland on July 17, 2015 as a sign of improvement and normalization in the banking sector.
Birna Einarsdóttir, CEO of Íslandsbanki:
'This result is in line with our expectations in light of S&P raising the rating on the Icelandic sovereign credit last week. We are pleased to receive this recognition of success of the Icelandic economy and the restructuring of the Bank's loan book. The investment grade rating of Íslandsbanki from Fitch and now from Standard & Poor's will further support our access to international capital markets and allow us to better serve our customers and fulfil the Bank's vision of being #1 for service.'