Standard & Poor’s downgrades Arion Bank’s long term credit rating to BBB but revised the outlook from negative to stable

Standard & Poor’s has downgraded Arion Bank’s long term credit rating from BBB+ to BBB but revised the outlook from negative to stable.
 
Main comments from Standard & Poor’s:

• The global recession expected in 2020 due to COVID-19 will affect the open and concentrated Icelandic economy and its banks, despite a substantial government package to counteract the effects. It will also exacerbate some of the Icelandic banking industry´s weaknesses.
• The 'BBB' rating level and stable outlook factor in the solid market position of the bank in Iceland, which has a relatively advanced digitalized banking platform. In S&P’s view, the bank is well ahead of many other European banks in its preparation for technological disruption.
• The stable outlook indicates that S&P expects the bank to withstand the consequences of the looming economic recession by maintaining solid capital position and comfortable funding and liquidity profiles

For further information please contact Theodor Fridbertsson, investor relations, at [e-mail] or tel: [phone].