R&I assigns A+ Credit Rating to Kaupthing Bank

(PRWEB) June 8, 2007 -- Rating and Investment Information (R&I), a Japan based rating agency, has assigned A+ credit rating to Kaupthing Bank. The rating outlook is stable.

In its announcement, R&I states that the rating reflects Kaupthing Bank's strong position in the Icelandic market as well as the diversification of its earnings and credit risks through the expansions into the U.K. and Scandinavian countries. In addition its good profitability and sound asset quality are taken into account. However, small size and volatility of the Icelandic economy and financial market, the risks in the banking business in U.K., and the latent risks associated with the rapid business expansion are also taken into consideration.

The diversification of funding sources continues to be a key strategic priority for Kaupthing Bank and the Asian market will be a fundamental part of this strategy. We believe that having a strong rating from R&I, which is widely acknowledged in the Asian financial markets, will certainly enhance our ability to serve our current investor base and attract new investors R&I also states that although the bank has a small deposit base and high reliance on wholesale funding, it has during the past year substantially reduced its refinancing risk by diversifying funding sources, lengthening funding tenures and implementing conservative liquidity controls.

R&I is the third rating agency to rate Kaupthing Bank, after Moody's Investor Service and Fitch Ratings which assigned Kaupthing Bank the long-term rating Aa3 and A respectively.

"The diversification of funding sources continues to be a key strategic priority for Kaupthing Bank and the Asian market will be a fundamental part of this strategy. We believe that having a strong rating from R&I, which is widely acknowledged in the Asian financial markets, will certainly enhance our ability to serve our current investor base and attract new investors," says Gudni Adalsteinsson, Chief Treasurer of Kaupthing Bank.

To read the news release visit: http://hugin.info/133944/R/1131381/211373.pdf 

About Rating and Investment Information (R&I)

R&I was established in 1998 by a merger of Nippon Investors Service (NIS) and Japan Bond Research Institute (JBRI). JBRI started its rating activity as the first rating agency in Japan in 1977, R&I has been providing more ratings than any other credit rating agency in Japan. As of April 30, 2007, R&I had 681 issuer ratings with respect to Japanese issuers. In addition to its prominence in the capital markets for its ratings of Japanese issuers, R&I rates securities and issuers on a global basis. For additional information about R&I and R&I's credit ratings, please visit http://www.r-i.co.jp/

About Kaupthing Bank

Kaupthing Bank is a northern European bank offering integrated financial services to companies, institutional investors and individuals. These services include corporate banking, investment banking, capital markets services, asset management and comprehensive wealth management for private banking clients. The Bank operates in ten countries, including all the Nordic countries, Luxembourg, Switzerland, the UK and the US. In addition the Bank operates a retail franchise in Iceland, where it is headquartered.

Kaupthing Bank is currently among the seven largest banks in the Nordic region in terms of market capitalization. Through sound organic growth and strategic acquisitions like the UK bank Singer & Friedlander in 2005 and FIH Erhvervsbank in Denmark in 2004, Kaupthing Bank has fortified its position to provide outstanding services to its client base in the UK, the Nordic countries and elsewhere in northern Europe. The Bank has 2,719 employees and total assets of EUR 42.9 billion (as of 31 December 2006).

For further information about kaupthing Bank visit the company's website, www.kaupthing.com.

For further information please contact:

Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126
Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112