Moody's Investors Service has today changed the outlook on the Icelandic Government's Baa3 foreign and local currency ratings to stable from negative. The outlooks on the foreign currency bond and deposit ceilings were also changed to stable from negative. The Government's short term rating is Prime-3. The change of outlook was driven by the improvement in Iceland's external liquidity due to the restoration of financing from the IMF and Nordic governments.
Moody's press release is here: