News
Fitch changes long and short-term credit rating
Fitch Ratings Services announced today that it has lowered its long-term counterparty credit ratings on Glitnir Bank from A to A-, with a negative outlook and as a result the short-term rating is lowered from F1 to F2 with a stable outlook. The B/C individual rating was confirmed.
"This result reflects Fitch's view that there continues to be uncertainty on the development of the Icelandic economy", says Ingvar Ragnarsson, Managing Director of Treasury at Glitnir. "Glitnir performed well in the first quarter of 2008, in a challenging market, with core income growing by 8.6% and costs reducing by 12% quarter on quarter. Glitnir demonstrated its inherent strengths with the generation of ISK 7.7bn pre-tax profits in the first quarter, confirming the Bank's underlying resilience and flexibility.
We would like to point out that in their press release Fitch states the following about Glitnir:
"Glitnir's ratings reflect the bank's adequate underlying profitability, its good asset quality."
"Fitch views positively Glitnir's EUR8.7bn liquidity position at end-March 2008, which should help it meet expected refinancing needs despite the bank's reliance on wholesale funding."
"...the agency notes the sound outlook in Norway, Glitnir's second home market, and in its renewable energy and seafood industry niche businesses."
For further information, please contact:
Ingvar Ragnarsson, Managing Director, Treasury, tel. +354 440 4665
mobile +354 844 4665 and e-mail: ingvar.ragnarsson@glitnir.is.
Vala Pálsdóttir, Head of Investor Relations, tel. +354 440 4989,
mobile +354-844 4989, e-mail: vala.palsdottir@glitnir.is.
Bjørn Richard Johansen, Managing Director, Corporate Communication,
mobile +47-47 800 100, e-mail: brj@glitnir.no.