13 June 2016

Moody's places Iceland's Baa2 sovereign rating on review for upgrade

Central Bank of Iceland

Moody's Investors Service has on 10 June placed Iceland's Baa2 issuer and government bond ratings on review for upgrade.

The key drivers of the review for upgrade are to evaluate whether the government's new fiscal strategy and tax reform will further improve its debt sustainability in the medium term, and to determine whether the upcoming auction of offshore krónur assets will be effective in reducing or containing vulnerabilities in the country's external position, and thus facilitating the generalised liberalisation of capital controls. 

Moody's press release from 10 June is available here: Moody's Press Release 10 June 2016

Moody's Credit Opinion on Iceland following the initiation of review for upgrade is available here: Moody's Credit Opinion 10 June 2016