S&P has raised Republic of Iceland Ratings to 'A/A-1' on lifting of capital controls. Outlook is stable. S&P say:
- We believe that the recent lifting of most of the remaining capital • controls andthe conclusion of an agreement with the owners of offshore krona assets strengthenIceland's external profile.
- We are therefore raising our long- and short-term ratings on Iceland to 'A/A-1'from 'A-/A-2'.
- The stable outlook reflects our view that the potential for improvements inIceland's public finances is balanced by the risk of the domestic economyoverheating over the next two years.