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Icelandic Banking Risk Assessment Revised To Group 5 On Asset Quality And Funding Pressure May 08
Standard & Poors, May 2008
STOCKHOLM (Standard & Poor's) May 12, 2008--Standard & Poor's Ratings Services said today that it had revised its Banking Industry Country Risk Assessment (BICRA) on the Republic of Iceland (foreign currency A/Negative/A-1, local currency AA-/Negative/A-1+) to Group 5 from Group 4. "This action primarily reflects a significant increase in Icelandic private sector leverage in recent years and the banking sector's increasingly high dependence on external financing," said Standard & Poor's credit analyst Louise Lundberg. "These developments leave the sector vulnerable to tight liquidity in the global markets and an expected recession that is likely to pressure asset quality," she added. Leverage in Iceland has increased sharply over the past four years. The corporate sector has expanded abroad through debt-financed acquisitions,...
Companies mentioned in this report are: Glitnir Bank,Iceland (Republic of)
Action: General Comment
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Research type: News
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Glitnir Bank,Iceland (Republic of)