MUMBAI (Thomson Financial) - Fitch Ratings said it has downgraded Icelandic
banks Glitnir Banki hf. and Kaupthing Bank hf.'s long-term issuer default
ratings (IDR) to 'A-' from 'A' and affirmed Landsbanki Islands hf.'s long-term
IDR at 'A', and removed them from negative watch.
The outlook is negative, and is predicated on the risk of a hard landing in
the Icelandic economy and the weaker outlook for a number of markets the banks
have expanded into, including European investment banking and capital markets
activities, and the U.K. economy, Fitch said.
Fitch said the banks are seeing some improvements in market sentiment,
reducing the risk of unanticipated calls on liquidity, but believes that they
remain vulnerable to the adverse effects of a prolonged market dislocation.
TFN.newsdesk@thomson.com
ans
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|