Arion Bank hf. - Company Announcement

Standard & Poor’s upgrades Arion Bank’s credit rating

Standard & Poor’s has upgraded Arion Bank’s credit rating from BBB- to BBB with
a positive outlook. The upgrade reflects the improving conditions in the
Icelandic economy, the deleveraging of Icelandic households and corporations
and the positive impact of the continued liberalization of capital controls. It
also takes into account Arion Bank’s enhanced access to international funding
markets and improved capital following the sale of legacy equity positions. 

Höskuldur H. Ólafsson, CEO of Arion Bank:

“The upgrading of Arion Bank’s credit rating is testament to the achievements
we have made in recent years.  This refers to both Arion Bank, which is
steadily consolidating its financial position, and also the Icelandic economy
which is performing well at the moment. A higher credit rating is important as
it raises our profile as potential clients among international investors and
enables us to obtain better terms. The main cost item in our operation is
funding and a higher credit rating enables us to reduce this cost and to offer
our customers better terms.” 

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

Attachments:

Arion RU October 2016.pdf