Íbúðalánasjóður - Company Announcement

Standard & Poor´s Lowers HFF´s Credit Rating

On October 6, 2008, Standard & Poor´s Rating Services lowered the Housing
Financing Fund´s (HFF) long-term local currency rating to 'BBB' from 'A+'.
HFF´s long-term foreign currency rating was also lowered to 'BBB' from 'A-'.
The long-term ratings were removed from CreditWatch with negative implications. 
The short-term foreign currency rating was lowered to 'A-3' from 'A-2' and the
short-term local currency rating 'A-1' was lowered to 'A-3'. 

The outlook on the HFF's rating is negative.

See attachment.

Attachments:

20081006_iceland ru.pdf