In our view, Arion Bank, a commercial bank created from the default of Kaupthing in 2008, holds important market positions in Iceland. Although operating in a high-risk environment, Arion Bank benefits from what we view as a strong capital position, ample liquidity, and a largely restructured loan book. We are assigning our 'BB+/B' ratings to Arion Bank. The stable outlook reflects our view that the bank's capital position will improve following the planned divestment of its equity portfolio and that the final restructuring of its loan book will require only limited additional impairments. STOCKHOLM (Standard&Poor's) Jan. 10, 2014--Standard&Poor's Ratings Services today assigned its 'BB+' long-term and 'B' short-term counterparty credit ratings to Iceland-based Arion Bank. The
