Housing Finance Fund Downgraded By Moody’s

Published February 21, 2013

Bond credit rating organisation Moody’s has downgraded Iceland’s largest mortgage provider to ‘junk’ status. The Housing Finance Fund (HFF), a government-owned lender, is seeking a bail out from the government to avoid defaulting on its debts, Bloomberg reports.
“There’s no risk of default. The Treasury, if it needed to, would bail out the fund,” said Sigurður Jón Björnsson, the chief financial officer of HFF. Still, the fund is currently severely lacking in capital, has been experiencing mounting loan losses, and is fully dependent on market funding, which was the basis for Moody’s downgrade.
The government had already injected 33 billion ISK into the struggling lender in late 2010 as part of a restructuring plan. In November 2012 the government said it would forward another 13 billion ISK to HFF to keep it afloat, however this amount would still leave HFF’s capital ratio at 3%, below the 5% regulatory minimum.



News
Iranian Asylum Seeker Denied Residence, May Be Deported In About 2 Weeks

Iranian Asylum Seeker Denied Residence, May Be Deported In About 2 Weeks

by

The Grapevine has received a copy of the decision from the Directorate of Immigration (UTL) stating that Iranian asylum seeker

News
No Sign Of Erupting, Katla Quakes Yet Again

No Sign Of Erupting, Katla Quakes Yet Again

by

Nearly 200 tremors were recorded around the volcano Katla over the past 24 hours, RÚV reports. Three of these tremors

News
Vast Majority Of Tourists Would Come Back To Iceland

Vast Majority Of Tourists Would Come Back To Iceland

by

A new poll conducted by Maskína for the Icelandic Tourist Board shows that nine out of ten tourists who visited

News
Collapsing Crane Likely Result Of Disabled Security Function

Collapsing Crane Likely Result Of Disabled Security Function

by

Further investigations into what caused a construction crane to buckle and collapse, narrowly missing the Bæjarins bestu hot dog stand

News
Prisoners’ Advocacy Group Issues Statement On Prison Reporting

Prisoners’ Advocacy Group Issues Statement On Prison Reporting

by

Afstaða, the Association for Betterment, has released a statement in response to a news story we reported on an ongoing

News
Patience Pays Off, When It Comes To The Aurora

Patience Pays Off, When It Comes To The Aurora

by

The Northern Lights abide the wishes of no one, but patience yielded quite a light show for those willing to

Show Me More!