Lánamál ríkisins - Company Announcement

Standard & Poor's changed its outlook today on Iceland´s sovereign credit ratings to stable from negative.

Standard & Poor's affirmed today an unchanged credit rating for BBB-/A-3 on
long and short term of Iceland's foreign and local currency. The outlook was
revised to stable from negative. 

Highlights of Standard and Poor's statement:

•  The Republic of Iceland's economy is recovering from the systemic failure
of its three largest banks, and has returned to positive economic growth
after two years of severe contraction.

•  In our view, significant headway has been made in restructuring the
private-sector balance sheet and we expect the process to be mostly
completed by mid-2012.

•  We are therefore revising the outlook on the ratings on Iceland to stable
from negative, which balances our view of Iceland's improved economic
fundamentals with downside risks associated with capital controls being
lifted in the next few years.

• We are also affirming the 'BBB-/A-3' sovereign ratings on Iceland.

Attachments:

SP_BBBA3RatingsAffirmed.pdf