Íslandsbanki hf. - Other information disclosed according to the rules of the Exchange

Islandsbanki hf.: S&P upgrades Íslandsbanki to BBB+/A-2 with stable outlook

International credit rating agency S&P Global Ratings (S&P) upgraded
Íslandsbanki's credit ratings from BBB/A-2 to BBB+/A-2 today, with a stable
outlook.

The upgrade is based largely on an improving operating environment for the
Icelandic banking system following the liberalisation of capital controls and
declining private sector debt. Because of this, S&P is of the view that the
Icelandic banking system has strengthened and Íslandsbanki's long-term risk-
adjusted capital position has improved.

The stable outlook on the Bank's ratings reflect S&P's expectation that the
Icelandic economy will remain resilient and that the Bank will maintain a strong
capital position in coming years, even while it continues to optimise its
capital structure.

Jón Guðni Ómarsson, Chief Financial Officer:

"It is gratifying to see the Bank's credit ratings improve and to see growing
confidence in the Icelandic economy and the financial system. The rating upgrade
is in line with favourable developments of the Bank's secondary spreads and
increased interest from foreign investors in the Bank's bonds in the past few
months, which is of benefit to the Bank's customers. The upgrade is also a clear
reflection of the successful revitalisation of the Bank and the Icelandic
economy over the past few years."

For further information:

  * Treasury - Johann Otto Wathne, johann.wathne@islandsbanki.is, tel
    +354 844 4607.
  * Public Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel:
    +354 440 4005.


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