Moody's upgrades Iceland's rating


New York, June 29, 2015 -- Moody's has 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. 

Attached find Moody´s report


Attachments

Moodys Iceland 29 June 2015.pdf