Mortgage covered bonds benefit from strong jurisdictional support in Iceland. The program benefits from one unused notch of jurisdictional support uplift. The rating is limited to the jurisdiction-supported rating level (JRL) given that we do not assign any notches of collateral-based uplift, because Islandsbanki hf. euro covered bond program has euro-denominated covered bonds outstanding. Therefore, the ratings on the covered bonds are capped at 'A' (the T&C assessment for Iceland). S&P Global Ratings' positive outlook on the ratings on Islandsbanki hf.'s mortgage covered bonds reflects that a positive rating action on the sovereign, considering the transfer and convertibility (T&C) assessment is at the same level as that of the sovereign, will result in a positive rating action on the covered
