24 November 2008

Standard & Poor's: Iceland Foreign Currency Rating Lowered To BBB- On Mounting Debt Burden; Outlook Negative

On Nov. 24, 2008, Standard & Poor's Ratings Services lowered its long-term foreign currency rating on Republic of Iceland to BBB- from BBB due to the sovereign's mounting public sector debt burden.

The Transfer & Convertibility assessment on Iceland was also lowered to BBB- from A- in response to controls on the capital account and some current account transactions, which have been in place since early October. At the same time, Standard & Poor's affirmed its BBB+/A-2 local currency ratings, and its A-3 short-term foreign currency sovereign credit ratings. The outlook is negative.

Standard & Poor’s press release can be approached here