- Fitch downgrades Kaupthing Banks's credit rating to A-

Fitch has today downgraded Kaupthing Bank's credit ratings. The
Bank's Long-term Issuer Default Rating (IDR) has been downgraded one
notch from A to A- and the Bank's Short-term IDR from F1 to F2. The
Bank's Individual rating B/C, Support 2 and Support Rating Floor BBB
remains unchanged. The long-term IDR was placed on negative outlook.
 
According to Fitch: The ratings of Kaupthing, while supported by the
geographic diversification of the bank's franchise and success in
turning around and integrating foreign subsidiaries, also reflect an
expectation of some deterioration in its core markets of Iceland and
the UK. The large liquidity portfolio maintained by the bank and
launch of retail deposits accounts in a large number of countries
should support the diversification of Kaupthing's funding sources.
 
Further information:
Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126 or Jónas
Sigurgeirsson - Chief Communications Officer, +354 444-6112