On July 18, 2014, Standard & Poor's Ratings Services revised its outlook on the Republic of Iceland to positive from stable. At the same time, the rating agency affirmed 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Iceland.
· Standard & Poor‘s expects growth in the Republic of Iceland to average close to 3% during 2014-2017, supported by improving domestic demand.
· Net general government debt projected to decline to 61% of GDP in 2017from 71% in 2014.
· The outlook revision reflects the view that there is a more than one-in-three likelihood that could raise the ratings within the next 24 months if Iceland's growth performance remains strong and broad-based, while fiscal improvements continue.