Arion Bank hf. - Company Announcement

Standard and Poor's confirms Arion Bank‘s BBB-/A-3 rating with stable outlook

Standard and Poor's (S&P) has today confirmed Arion Bank's BBB-/A-3 rating with
stable outlook.  According to S&P the key strengths of Arion Bank are: strong
capital with high leverage ratios, stable franchise equally split between
retail and corporates, and ample liquidity buffers capable of meeting expected
deposit outflows. Arion Bank's key weaknesses according to S&P are: uncertainty
associated with capital controls in Iceland, a domestic economy that offers few
diversification opportunities, and still sizable non-recurring items leading to
volatile profitability. 

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