Tuesday June 30 2015

News Source: Global Exchanges

Focus: Credit Rating

Type: General




On 29th June 2015, Moody’s upgraded the government of Iceland`s government debt ratings to Baa2 from Baa3. The rating outlook is stable.

The upgrade reflects the following key drivers:

  1. The initiation of a careful process of capital account liberalization that is expected to reduce the country`s external vulnerabilities, while protecting economic and financial stability;
  2. Expectation of further improvement in the government`s gross and net debt position over the next three to four years, thanks to robust growth, further fiscal consolidation and debt pre-payments;
  3. Improvements to macro-prudential and micro-prudential regulation designed to preserve the stability of Iceland`s financial system in the future.

In a related decision, Moody`s raised Iceland`s country ceilings for long- and short-term foreign currency debt and deposits to Baa2/P-2 from Baa3/P-3, and its country ceilings for local currency debt and deposits to Baa1 from Baa2.

Click on the link above for further details.