SOURCE: Glitnir

May 09, 2008 13:47 ET

Fitch changes Glitnir Bank's long and short-term credit rating

REYKJAVIK, ICELAND--(Marketwire - May 9, 2008) - Fitch Ratings Services announced today that it has lowered its long-term counterparty credit ratings on Glitnir Bank from A to A-, with a negative outlook and as a result the short-term rating is lowered from F1 to F2 with a stable outlook. The B/C individual rating was confirmed.

"This result reflects Fitch's view that there continues to be uncertainty on the development of the Icelandic economy", says Ingvar Ragnarsson, Managing Director of Treasury at Glitnir. "Glitnir performed well in the first quarter of 2008, in a challenging market, with core income growing by 8.6% and costs reducing by 12% quarter on quarter. Glitnir demonstrated its inherent strengths with the generation of ISK 7.7bn pre-tax profits in the first quarter, confirming the Bank's underlying resilience and flexibility.

We would like to point out that in their press release Fitch states the following about Glitnir:

"Glitnir's ratings reflect the bank's adequate underlying profitability, its good asset quality."

"Fitch views positively Glitnir's EUR8.7bn liquidity position at end-March 2008, which should help it meet expected refinancing needs despite the bank's reliance on wholesale funding."

"...the agency notes the sound outlook in Norway, Glitnir's second home market, and in its renewable energy and seafood industry niche businesses."

Fitch press release is attached.

Glitnir first quarter results:

About Glitnir bank:

Glitnir is a Nordic bank, with its headquarters in Iceland and operations in ten countries. The Bank's home markets are Iceland and Norway where it offers a broad range of financial services, including corporate banking, investment banking, capital markets, investment management and retail banking. Outside of our home markets we have operations in Finland, Sweden, UK, Luxembourg, US, Canada, China and Russia. We will furthermore open an office in India in the second half of 2008. Glitnir's international expansion is mainly driven by two specialized industry sectors - seafood and sustainable energy - in which the bank has developed significant industry expertise built on its Icelandic and Norwegian heritage. Glitnir's shares are listed on NASDAQ OMX in Iceland under the symbol GLB.

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Contact Information

  • For further information, please contact:
    Ingvar Ragnarsson
    Managing Director, Treasury
    tel. +354 440 4665
    mobile +354 844 4665
    e-mail: Email Contact

    Vala Pálsdóttir, Head of Investor Relations
    tel. +354 440 4989
    mobile +354-844 4989
    e-mail: Email Contact

    Bjørn Richard Johansen
    Managing Director, Corporate Communication
    mobile +47-47 800 100
    e-mail: Email Contact