18 July 2014
Iceland Outlook Revised To Positive On Strong Growth And Improving Public Finances; 'BBB-/A-3' Ratings Affirmed
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.On August 19 2014, the rating agency published the supplementary analysis which can be found below.
Overview:
• 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 2017 from 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.
Standard & Poor‘s press release can be seen here.
Standard & Poor‘s supplementary analysis can be seen here.