Moody’s Ratings assigned an issuer and deposit rating of A2/P-1 to Landsbankinn, the largest bank in Iceland, with a stable outlook. The baseline credit assessment (BCA) was set at baa2, supported by an uplift of three notches under Moody’s advanced Loss Given Failure analysis.
The rating reflects Landsbankinn’s strong financial fundamentals, including extremely low loss given failure, the agency said. This marks Moody’s first rating assignment for the bank.
Landsbankinn Chief Executive Lilja Björk Einarsdóttir noted that the rating positions the bank as the strongest in Iceland in terms of financial strength. She added that the A2 credit rating enhances the bank’s access to capital markets and broadens its investor base. The improved rating also creates opportunities for more favorable funding terms and supports the bank’s ability to offer competitive customer pricing.
The bank has focused on diversifying and optimizing its capital structure in recent years, which contributed to the rating outcome, Einarsdóttir said.
