February 26, 2007 07:52 ET

Glitnir's Comments to Moody's Positive Announcement on Friday: Moody's Upgrades Glitnir's Credit Rating to Aaa; Affirms P-1 Rating and Financial Strength

REYKJAVIK, ICELAND--(CCNMatthews - February 26, 2007) - Moody's Investors Service upgraded Glitnir Bank's credit rating, along with the other Icelandic banks, on Friday to Aaa due to changes in JDA Methodology. This is the highest possible rating. Moody's affirmed the P-1 credit rating of Glitnir and the financial strength, C. Moody's press release and rating changes for Iceland are attached via link.

Moody's Rating

Moody's Press Release

- Glitnir was rated A1 and the upgrade is the outcome of a change in Moodys' methodology. This exceeded our expectations and is broadly positive for Glitnir and the other Icelandic banks, says Bjarni Armannsson CEO of Glitnir in a comment.

- Moody's announced Friday afternoon that due to changes in its JDA Methodology it has decided to upgrade all the Icelandic banks to Aaa. The new ratings of the Icelandic banks reflect the strength of the Icelandic economy and the Icelandic banking sector. This should strengthen the funding operations of the Bank as it should give access to a wider group of investors. Therefore this should generally improve the operating environment, says Tomas Kristjansson CFO of Glitnir in a comment.

Moody's stated 24 February 2007 in a release "Moody's Announces Bank Rating Actions Resulting From Implementation of JDA Methodology - Iceland". As part of the planned application of its joint default analysis (JDA) methodology and its updated bank financial strength rating (BFSR) methodology, Moody's Investors Service Friday published the rating results for banks in Iceland. In February 2007 Moody's published a Special Comment, entitled "Incorporation of Joint-Default Analysis into Moody's Bank Rating Methodology". The JDA methodology identifies four potential sources of external support for banks: (1) parental support, (2) support from a cooperative or mutualist group, (3) support from a regional or local government, and (4) systemic support.

About Glitnir

The financial group Glitnir offers universal banking and is a leading niche player in three global segments; seafood/food, sustainable energy, and offshore supply. Glitnir is a Nordic bank and consider Iceland and Norway as home markets. Services include retail, corporate and investment banking, stock trade and capital management. Glitnir is the sole owner of a bank in Luxembourg (Glitnir Bank Luxembourg S.A) and banks and financial services companies in Norway (BNbank and Glitnir bank, Glitnir Securities and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring, and 50.1 percent of Union Gruppen. Glitnir's subsidiary BNbank own 45 per cent of Norsk Privatokonomi ASA). In Sweden, Glitnir owns the leading Swedish brokerage firm Glitnir AB (former Fischer Partners). Glitnir recently announced its intention to make a public tender offer for the shares in FIM Group Corporation in Finland. Glitnir has received an undertaking from the 11 major owners of FIM, who currently hold 68.1 percent of FIM, to sell their shares to Glitnir. Glitnir operates branches in London and Copenhagen and representative offices in Halifax, Canada and in Shanghai, China. Glitnir plan to open an office in New York, USA, to support the North American business in the spring of 2007. Glitnir own 54 percent of MasterCard in Iceland. Glitnir is listed on the Icelandic Stock Exchange. Glitnir has shown remarkable growth in recent years. The 2006 results, published 30 January, show record after-tax profits of EUR 435 million, an increase of 102% over 2005. Glitnir reported a record high after-tax return on equity of 39.4 percent in 2006. For more information:

Contact Information

  • Tómas Kristjánsson
    mobile: +354-844-4656
    Bjørn Richard Johansen
    Managing Director
    Corporate Communication
    mobile +47-47 800 100
    Vala Palsdottir
    Head of Investor Relations
    mobile: +354-844 4989