Iceland‘s rating no longer “junk”

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Iceland‘s rating no longer “junk”

Fitch Ratings, one of the international ratings companies has upgraded Iceland's government bond‘s ratings from junk bond status.

Fitch was the one ratings company that rates Icelandic government bonds that had degraded the government bonds to “junk” status. Moody’s and S&P had threatened to do so if Iceland did not pass the so-called Icesave law in a general election in April 2010. They did not deliver on their threat.

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The Central Bank of Iceland. Photo: Páll Stefánsson/Iceland Review

The rating of Iceland is still lower than most of the neighboring countries. Only Greece has a lower grade for government bonds in the European Economic Area. Still the higher grade was welcomed by the Governor of the Central Bank, Már Gudmundsson. In an interview with RÚV stat radio on Saturday he said that he did not expect the grade to increase again in the near future.

Long-term foreign  currency Issuer Default Rating (IDR) to 'BBB-' from 'BB+' and affirmed its Long-term local currency IDR at 'BBB+'. Its Short-term foreign currency IDR has also been upgraded to 'F3'from  'B' and its Country Ceiling to 'BBB-' from 'BB+'. The Outlooks on the Long-term ratings are Stable.

BJ