Moody's has upgraded the government of Iceland's government debt ratings to Baa2 from Baa3.
The formation of this government of the Progressive Party and the Independence Party begins a new advance for the country and its people. The government's prime concerns are to improve the situation of households in Iceland and to strengthen business and industry, with greater value creation for the common good.
The government will seek to mobilise the strength of national unity and overcome the antagonism and suspicion which has characterised Icelandic politics and public debate for some time. Progress and an improved standard of living in Iceland depend on cooperation and cohesion, and in the years to come Icelanders will continue to jointly resolve the nation's main challenges co-operatively.
Through its actions the government also intends to eliminate the political uncertainty which has been too conspicuous in Iceland in recent years. Efforts will be directed at achieving a broad reconciliation with the social partners on labour market developments and future investment. It is a prerequisite for Iceland to enter a new era of growth and stability that its economy enjoy trust once more both at home and abroad. This reinforces the foundation of welfare and creates the conditions for improved household economy.