Arion Bank hf. - Company Announcement

Reitun updates its credit rating of Arion Bank

Reitun has given Arion Bank a rating that is two notches below the Republic of
Iceland or B+ with a positive outlook. The highest achievable rating according
to Reitun's rating scale is A+. The outlook has been upgraded from stable to
positive. 

Reitun notes that the Bank is looking increasingly to the future. The Bank is
financially robust and its core operations and competitive position are strong.
The quality of the loan portfolio is improving and the completion of several
major financial restructuring projects for its clients will improve its key
financial ratios. If the Bank completes these tasks as planned it will
positively affect the Banks's rating. The Bank's credit rating remains
unchanged from last year while the outlook is upgraded to positive. The special
circumstances in Iceland, i.e. the capital controls, settlements of debts with
the creditors of the old banks, and political uncertainty have a highly
negative impact on the credit rating of Iceland and consequently the Bank. This
makes it more difficult for the Bank to raise funding on the international
markets. However, the Bank is well funded in foreign currency and does not
require refunding in the near future. 

For further information please contact: Bára Mjöll Þórðardóttir, Corporate
Communications, Arion Bank bara.thordardottir@arionbanki.is; Tel: (+354) 856
7159.

Bifogade filer:

Arion banki lanshfismat juli 2013.pdf