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
Iceland’s Oldest Record Store Chain Closing

Iceland’s Oldest Record Store Chain Closing

by

Icelandic record store, Skífan, will be closing its doors after 40 years in business, reports DV. The owner of Skífan

News
Iceland’s Glaciers Have Shrunk Significantly

Iceland’s Glaciers Have Shrunk Significantly

by

Satellite images from the U.S. Geological Survey (USGS) show that there has been a staggering decrease in the ice capping Mýrdalsjökull

News
Woman Arrested With Fake Gun

Woman Arrested With Fake Gun

by

A woman was arrested in Selfoss yesterday after threatening people on the street with an imitation shotgun, reports RÚV. Police

News
PM: “Inevitable” Iceland Looks Into “Proactive Investigations”

PM: “Inevitable” Iceland Looks Into “Proactive Investigations”

by

Prime Minister Sigmundur Davíð Gunnlaugsson cautioned it would be “irresponsible” to believe terrorism cannot happen in Iceland, and that it

News
Tourism: Iceland’s Biggest Revenue Generator

Tourism: Iceland’s Biggest Revenue Generator

by

Tourism has become the largest revenue-generating sector in Iceland, surpassing even such stalwart giants as fishing, and bringing in the

News
MoMA Share Behind The Scenes Pictures From Björk Exhibit

MoMA Share Behind The Scenes Pictures From Björk Exhibit

by

MoMA are busy setting up the Björk Retrospective which opens next week and have taken to Instagram to share behind

Show Me More!