Icelandic Banking Risk Assessment Revised To Group 5 On Asset Quality And Funding Pressure May 08

  • ID: 2127336
  • May 2008
  • Region: Iceland
  • Standard & Poors
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  • Glitnir Bank
  • Iceland (Republic of)
  • MORE

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

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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2 of 3

- Glitnir Bank
- Iceland (Republic of)

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Note: Product cover images may vary from those shown




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