Moody’s Ratings has assigned an issuer and deposit rating of A2/P-1 to Landsbankinn, the largest commercial bank in Iceland, marking its first rating assignment for the lender.
The rating agency assigned a stable outlook and a baseline credit assessment of baa2, supported by what Moody’s described as an "extremely low loss given failure." The rating incorporates a three-notch uplift under the advanced Loss Given Failure analysis.
Landsbankinn has undertaken efforts in recent years to diversify and optimize its capital structure, a factor Moody’s cited in its assessment. The bank’s chief executive, Lilja Björk Einarsdóttir, said the A2/P-1 rating positions Landsbankinn as the strongest Icelandic bank in terms of financial strength.
Einarsdóttir added that the rating strengthens the bank’s position in capital markets and broadens access to a wider investor base. She also noted that the improved rating creates opportunities for more favorable funding terms and enhances the bank’s ability to offer competitive pricing to customers.
