According to S&P Global Ratings the economic risk facing Icelandic banks has abated with a stabilizing housing market and significant deleveraging of the private sector.

S&P has improved their assessment of economic risk faced by Icelandic banks and revised the anchor for banks operating in Iceland to bbb from bbb-.

As a result S&P Global Ratings raised the long-term rating on Arion Bank to BBB+, affirmed the A-2 short term issuer credit rating. The outlook is stable.