Moody's Ratings (Moody's) has today affirmed Íslandsbanki's A3 long-term foreign and local currency issuer ratings, the A2 long-term and P-1 short-term foreign and local currency deposit ratings, and A3 senior unsecured ratings, the baa2 Baseline Credit Assessment (BCA) and Adjusted BCA.   The outlook on the long-term deposit, long-term issuer and senior unsecured debt ratings remains stable.
 
The rating action follows the announcement from Íslandsbanki hf. that it has proposed opening merger talks with Kvíka banki hf.
 
Please find the release from Moody's attached.