Landsbankinn hf.: S&P lowers Landsbankinn’s credit rating to BBB with stable outlook
S&P Global Ratings has today announced a lowering of Landsbankinn’s long-term credit rating. The credit rating is lowered by one notch, to BBB/A-2 with stable outlook.The downgrade is triggered by S&P’s assessment of industry risk with regard to a reduction in economic activity due to the Covid-19 pandemic. This results in that the anchor, used as a starting point in the credit rating of banks operating in Iceland, is revised down by one notch. The stable outlook of Landsbankinn’s credit rating is based on S&P’s expectation that the Bank will withstand the consequences of the economic recession by maintaining solid capital positions and comfortable funding and liquidity profiles.In the announcement, S&P acknowledges that Landsbankinn has a higher market share and slightly better efficiency than its domestic peers. It is further noted that the Bank has a relatively advanced digitalized banking platform and is well ahead of many other European banks in its preparation for technological disruption.Further information can be found in S&P’s announcement, available on the Bank’s website, www.landsbankinn.com/credit-rating.
