Arion Bank hf. - Company Announcement

Standard & Poor´s raises Arion Bank’s ratings to investment grade

Following the presentation of plans for the eventual removal of capital
controls in Iceland the international ratings agency Standard & Poor´s has
raised its ratings on Arion Bank from BB+ to the investment grade ratings of
BBB-, with stable outlook. Standard & Poor´s decision follows the ratings
agency's decision from July 17 to raise Iceland´s ratings to BBB from BBB-. 

Arion Bank´s improved ratings reflect its business position and strong capital,
earnings and liquidity position. 

Höskuldur H. Ólafsson, CEO of Arion Bank:

“It is important for us as well as our customers that the Bank now has
investment grade ratings from S&P. Arion Bank currently has strong access to
the international bond markets as has been evidenced in recent EUR 300 million
and NOK 500 million bond transactions. The upgrade will broaden Arion Bank's
investor base and contribute to lower funding costs in the future. It is also
very important to us that with greater access to international funding markets
we will be better able to service our customers in need of funding in foreign
currencies.” 

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444
7108.

Bifogade filer:

Icelands Commercial Banks Upgraded.pdf