Covered bonds benefit from strong jurisdictional support in Iceland. The implementation of the EU's Bank Recovery And Resolution Directive (BRRD) results in an additional two notch uplift from the issuer credit rating (ICR) on Islandsbanki. The program benefits from one unused notch of jurisdictional support uplift. The rating is limited to the jurisdiction-supported rating level given that we do not assign any notches of collateral-based uplift, because we consider the Islandsbanki hf. euro covered bond program to be intended for issuing Euro denominated covered bonds. Therefore, the ratings on the covered bonds are capped at 'A' (the T&C assessment for Iceland). S&P Global Ratings has assigned its 'A' long-term credit ratings to Islandsbanki hf.'s covered bond program and its outstanding
