Íbúðalánasjóður - Company Announcement

HFF ratings lowered with negative outlook by Standard & Poor´s

Standard & Poor´s credit ratings agency has today, May 18, lowered the Housing
Financing Fund rating (HFF) to BB with negative outlook in line with the
lowering of the long-term local-currency sovereign credit rating of the
Republic of Iceland. Furthermore the Housing Financing Fund has been removed
from CreditWatch list. 

See the attached announcement.

Attachments:

2011_05_18 S&P Rating.pdf