Icelandic banks get highest ranking Skip to content

Icelandic banks get highest ranking

By Iceland Review

The international investors service Moody’s upgraded the long-term credit rating of the Icelandic banks, Glitnir, Landsbanki and Kaupthing, on Friday from A1 and A2 to Aaa, the highest rating available.

According to Fréttabladid, the banks’ short-term credit rating remains unchanged, at P-1.

The three Icelandic banks now have the same score as five other Nordic banks, including Nordea and Danske Bank and a higher score than the big Swedish banks, SEB, Svenska Handelsbanken and Swedbank, which were downgraded.

“It is noticeable how high Moody’s evaluates the long-term debentures of the Icelandic banks in international comparison,” said Halldór J. Kristjánsson, CEO of Landsbanki.

“As far as Landsbanki is concerned our credit rating on long-term liabilities is being upgraded by five categories, from A2 to Aaa,” Kristjánsson said.

CEO of Glitnir Bjarni Ármansson said the news is pleasing and that it will lead to the bank reaching a broader market in terms of selling its debentures.

“It is clear that this change [the upgrading] did not happen because of a change in the bank but because of a change in Moody’s methods. Glitnir is the same bank today as it was on Friday,” Ármansson said.

The CEO of Kaupthing, Hreidar Már Sigurdsson, said: “Although it is too early to say what the effect [of the upgrading] will be, this should support our operations in the future.”

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