Standard & Poor’s has upgraded Arion Bank’s long term credit rating from BBB to BBB+ with a stable outlook. The Bank’s short term credit rating remains A-2.
Arion Bank continues to occupy a strong position and has a robust capital position in the opinion of Standard & Poor’s. The rating agency regards the Bank’s reductions in equity positions as positive. Standard & Poor’s also takes into account the continued strong economic growth in Iceland, with improving economic resilience and falling private sector leverage.
Höskuldur H. Ólafsson, CEO of Arion Bank:
“We are pleased by this upgrade, although it was not unexpected. Arion Bank is in an excellent position, not least with regard to key factors such as the Bank’s capital position. In addition Iceland has been experiencing stronger economic growth than the rest of Europe. The upgrading of the credit rating is therefore a logical step and is wholly consistent with the positive developments at the Bank and in Iceland in general. We can clearly feel growing interest from international investors, both in Arion Bank and the Icelandic business sector, and the improved credit rating will serve to heighten this interest.”
Arion Bank reported net earnings of ISK 14.4 billion in 2017, compared with ISK 21.7 billion in 2016. Return on equity was 6.6%, compared with 10.5% in 2016.
Arion Bank hf. (“Arion Bank”) and Kaupthing ehf. (“Kaupthing”) announce today the results of a private placement of shares in Arion Bank owned via Kaupthing’s wholly-owned subsidiary, Kaupskil ehf.
At a shareholders‘ meeting of Arion Bank which took place today 12 February 2018, it was resolved to amend the Bank‘s articles of association by inserting a temporary authority for the Bank‘s Board of...