Fitch Ratings announced today that it had upgraded Iceland‘s long-term foreign and local-currency Issuer Default Ratings (IDRs) to ‘A’ from ‘A-’. The ratings outlook is stable.
The main rating drivers are continued economic stability, reduced external vulnerability and improvements in government debt ratios, supported by robust growth.
“This is welcome news for the new administration. The improved ratings confirms the confidence of Fitch in the strength of the Icelandic economy and on the emphasis of the new administration on continued economic stability as put forward in the Coalition Agreement” said Bjarni Benediksson Minister of Finance and Economic Affairs. The upgrade marks the fourth ratings upgrade for the Republic of Iceland in 2017.
“The upgrade will prove beneficial for Iceland as in will reduce the cost of interest for the sovereign, the Icelandic financial system and companies and households” said Bjarni Benediktsson, Minister of Finance and Economic Affairs.