Landsvirkjun - Company Announcement

Landsvirkjun back to investment grade following Standard & Poor‘s upgrade

Standard & Poor’s credit rating agency has upgraded Landsvirkjun‘s rating to
BBB- from BB+. The rating applies both to long-term commitments with and
without a state guarantee. Outlook is stable. The rating action follows
Standard & Poor’s upgrade for the Republic of Iceland from January 15, 2016 to
BBB+ from BBB. 

Hordur Arnarson, CEO:

"This is very good news for Landsvirkjun and confirms positive development in
operations based on improved financials and reduced leverage. To achieve
investment grade without a state guarantee increases trust amongst lenders and
supports Landsvirkjun’s operations e.g. with improved access to capital and
lower financing cost. We will continue to focus on reducing leverage and
further improving the operation of the company". 



For further information please contact Rafnar Larusson, CFO Phone nr. +354 515
9000 or by email: rafnar@lv.is