Kaupþing banki hf. - Company Announcement

Moody's downgrades credit ratings

Moody's Investors Service has today announced that it has downgraded
Kaupthing Bank's credit ratings. The Bank's long-term rating is
downgraded from A1 to Baa3, the Bank's financial strength rating
(BFSR) is downgraded from C- to D+ and the Bank's short-term rating
is downgraded from P-1 to P-3. All ratings are on review with
direction uncertain.

Further information:
Gudni Adalsteinsson, Chief Treasurer, tel. +354 444 6126
Jónas Sigurgeirsson, Chief Communication Officer, tel. +354 444 6112