Iceland banks blow after Glitnir move
11 April 2012
A host of Icelandic banks were today hit by ratings downgrades following the nationalisation of the country's third-biggest bank Glitnir.
Fitch Ratings cut Glitnir after the Icelandic government took an emergency 75% stake in the bank for 600 million (£477 million).
Glitnir has links to High Street chains such as House of Fraser through Baugur owner Jon Asgeir Johannesson, its largest shareholder.
Fitch also cut Kaupthing, Landsbanki and Straumur against the worsening economic backdrop in Iceland.
The government said a Glitnir and Landsbanki merger was "an unrealistic option".
