Landsbankinn receives strong A2/P-1 credit rating from Moody’s

Landsbankinn has received a strong credit rating from Moody’s Ratings, which has assigned the Icelandic bank an issuer and deposit rating of A2/P-1 with a stable outlook. This rating reflects the bank’s robust financial health and strong creditworthiness.

Lilja Björk Einarsdóttir, CEO of Landsbankinn, expressed satisfaction with the rating, stating, "We are very pleased with Landsbankinn's success and that this is reflected in a strong credit rating from Moody’s Ratings. It is particularly gratifying that Landsbankinn is rated as the strongest of the Icelandic banks in terms of financial strength."

The rating is supported by the bank’s baa2 Baseline Credit Assessment (BCA) and the low loss given failure, which has resulted in a three-notch uplift under the advanced Loss Given Failure (LGF) analysis. According to Björk Einarsdóttir, "The Bank’s operations are sound and stable, its financial position strong, and we have continued to develop our services and strengthen our customer relationships."

In recent years, Landsbankinn has focused on diversifying and optimizing its capital structure. Björk Einarsdóttir noted, "In recent years, we have worked systematically to diversify and further optimize the Bank's capital structure, and that work is now yielding results."

The A2 credit rating is expected to strengthen Landsbankinn’s position in capital markets and provide access to a broader group of investors. Björk Einarsdóttir added, "An A2 credit rating strengthens Landsbankinn's position in capital markets and facilitates access to a broader group of investors. Over the longer term, this creates opportunities for more favourable funding and enhances our ability to offer customers attractive and competitive terms."

The bank’s success is attributed to its strategic focus on financial strength and customer service. Landsbankinn’s ongoing efforts to improve its capital structure are seen as key factors in achieving this high rating.