Arion Banki

The rating reflects the high credit quality of Arion Bank’s covered bond pool, the strength of the Icelandic covered bond legislation and the systemic importance of covered bonds. The covered bonds are governed under the Icelandic legal framework which is fully aligned with the EU harmonisation directive and regulations.

Benedikt Gíslason, CEO of Arion Bank:
“We are delighted that Moody’s has assigned an Aa2 rating to Arion Bank’s euro covered bonds. The rating reflects the quality of Icelandic mortgages, the strong position and robust framework of covered bonds in Iceland. Arion Bank was the first Icelandic bank to issue covered bonds in euros which now constitute an important source of funding for the Icelandic banking system.

This is the highest current rating by an Icelandic issuer and the fact that Arion Bank has been rated three notches higher than the Icelandic government represents a significant milestone. We are hopeful that this solid credit rating opens up the way to a more diverse range of investors than before.”