Icelandic Bank Ratings Unaffected By Sufficiently Effective Resolution Regime; 'BBB+' RCRs Assigned; Outlooks Stable

We now assess the Icelandic resolution framework as sufficiently effective. While the banks have until January 2024 to meet regulatory loss-absorbing capacity requirements, their existing capital and liability stacks meet those requirements today. We do not expect the banks to build additional loss-absorbing capacity buffers sufficient to meaningfully lower default risk on senior preferred debt, at least in the near term. Consequently, our long-term issuer credit ratings on the Icelandic banks are unchanged at 'BBB', and the outlooks remain stable. We are assigning our 'BBB+/A-2' resolution counterparty ratings to the three rated Icelandic banks classified as domestic systemically important institutions. LONDON (S&P Global Ratings) May 17, 2022--S&P Global Ratings said today that it assigned its 'BBB+/A-2' long- and short-term resolution

...May 17, 2022 - We now assess the Icelandic resolution framework as sufficiently effective. - While the banks have until January 2024 to meet regulatory loss-absorbing capacity requirements, their existing capital and liability stacks meet those requirements today. We do not expect the banks to build additional loss-absorbing capacity buffers sufficient to meaningfully lower default risk on senior preferred debt, at least in the near term. - Consequently, our long-term issuer credit ratings on the Icelandic banks are unchanged at '###', and the outlooks remain stable. - We are assigning our '###+/A-2' resolution counterparty ratings to the three rated Icelandic banks classified as domestic systemically important institutions. LONDON (S&P Global Ratings) May 17, 2022--S&P Global Ratings said today that it assigned its '###+/A-2' long- and short-term resolution counterparty ratings (RCRs) to Arion Bank, Islandsbanki hf, and Landsbankinn hf....

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