S&P ups Icelandic banks

S&P said it raised its long- and short-term counterparty credit ratings on Iceland-based Arion Bank hf., Islandsbanki hf. and Landsbankinn hf. to BBB/A-2 from BBB-/A-3.

The outlooks are positive.

At the same time, the agency revised its outlook on Housing Financing Fund Ibudalanasjodur (HFF) to positive from stable and affirmed its BB/B long- and short-term counterparty credit ratings.

S&P said the actions follow its review of the Icelandic banking sector and reflect improved operating conditions for banks as Iceland makes continued progress in liberalizing capital controls. The conclusion of composition agreements between the government and the estates of the three banks, signed in late 2015, has strengthened the government's finances and removed significant uncertainty with respect to the banks' balance sheets and liquidity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.