Moody's lowers Glitnir

Moody's Investors Service said it downgraded the long-term deposit rating of Glitnir banki hf to C from Caa1 and the senior debt ratings to C from Caa2.

The outlook is stable. This concludes the review for downgrade.

According to the agency, the downgrade reflects Glitnir's preliminary asset valuations, which were disclosed on Feb. 6.

The downgrade reflects expectation that recoveries by senior creditors are likely to be low with estimated recovery rates of below 50% on senior unsecured debt, which is consistent with the C rating, the agency said.

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