Arion Bank hf.: Standard & Poor's confirms Arion Bank's long term credit rating BBB+ with a stable outlook

Standard & Poor's has confirmed Arion Bank's long term credit rating BBB+ with a stable outlook. The Bank's short term credit rating remains A-2.

The Icelandic banking market remains stable as the economy continues to grow and signs of overheating are receding in the opinion of Standard & Poor's. In their view the role of pension funds in mortgage lending continues to distort Icelandic banks' competitive environment in terms of business generation and margins.

For further information please contact Haraldur Gudni Eidsson of Arion Bank's communications division at [e-mail], or tel: [phone].