Kaupþing banki hf. - Company Announcement

Fitch downgrades Kaupthing Bank's credit rating

Fitch has today downgraded Kaupthing Bank's credit ratings. The
Bank's Long-term Issuer Default Rating (IDR) is downgraded from A- to
BBB and the Bank's Short-term IDR is downgraded from F2 to F3. The
Bank's support rating is affirmed at 2, Individual rating is
downgraded from B/C to C, and Support Rating Floor is downgraded from
BBB to BBB-. All ratings are placed on Rating Watch Negative.

Further information:
Gudni Adalsteinsson - Chief Treasurer, + 354 444 6126 or Jónas
Sigurgeirsson - Chief Communications Officer, +354 444 6112.