Fitch Rates Islandsbanki's GMTN Programme 'BBB-'/'F3'
The ratings of the programme apply only to senior unsecured issuance. There is no assurance that notes issued under the programme will be assigned a rating, or that the rating assigned to a specific issue under the programme will have the same rating as the programme.
KEY RATING DRIVERS
The programme and issue ratings are driven by and equalised with Islandsbanki's Long - and Short-Term Issuer Default Ratings (IDRs). In Fitch's view, the likelihood of default on senior unsecured notes under the programme reflects the likelihood of default of the bank.
Islandsbanki's ratings are underpinned by its leading Icelandic universal banking franchise, healthy capitalisation and improving asset quality but also reflect its exposure to a small economy susceptible to domestic and international shocks.
RATING SENSITIVITIES
The programme and issue ratings are sensitive to a change in Islandsbanki's Long - and Short-Term IDRs.
Islandsbanki's ratings are likely to come under pressure if its risk appetite increases, for example through looser underwriting standards or rapid expansion of foreign banking operations. Less conservative capital and liquidity management, or a significant shock to the economic environment leading to asset quality deterioration, would also be rating negative. Positive rating action would be contingent on Islandsbanki maintaining a moderate risk appetite, while sustaining the asset quality improvements and large capital buffers achieved to date. This is provided the Icelandic operating environment demonstrates resilience to external shocks in the post-capital controls era. Reduced uncertainty following the removal of the foreign currency overhang and final steps to lifting capital controls could be rating positive.
Комментарии