S&P Research Update: Republic of Iceland Ratings Raised To 'A/A-1' On Lifting Of Capital Controls; Outlook Stable
S&P has raised Republic of Iceland Ratings to 'A/A-1' on lifting of capital controls. Outlook is stable. S&P say:
• We believe that the recent lifting of most of the remaining capital controls and the conclusion of an agreement with the owners of offshore krona assets strengthen Iceland's external profile.
• We are therefore raising our long- and short-term ratings on Iceland to 'A/A-1' from 'A-/A-2'.
• The stable outlook reflects our view that the potential for improvements in Iceland's public finances is balanced by the risk of the domestic economy overheating over the next two years.