Íslandsbanki outlook revised from stable to positive by S&P
Standard & Poor’s revised its outlook on Íslandsbanki to positive from stable. The bank’s ratings were affirmed at BB+/B.
S&P‘s positive outlook on Íslandsbanki largely reflects their view that the banking sector is improving and their positive outlook on the Icelandic sovereign. On July 18, 2014, they revised the outlook on the sovereign to positive due to strong growth and declining government debt.
They anticipate that Íslandsbanki will improve its asset quality metrics over the next two years, and make further progress in reducing the legacy equity and real estate risks on its balance sheet.
S&P also notes that the Bank, due to its larger capital base, could benefit more if S&P would upgrade the sovereign and revise their assessment of risks related to economic imbalances in the banking sector to intermediate from high.
Jón Guðni Ómarsson, CFO of Íslandsbanki:
“This result is in line with our expectations in light of the outlook change on the Icelandic Sovereign last summer. We are pleased to receive this recognition of success with regard to the Icelandic economy and the restructuring of the Bank’s loan book. This will hopefully further support our access to international capital markets and allow us to better serve our customers.“