Moody’s Investor Service raised the credit rating for the Icelandic state treasury by two points, from Baa2 to A3 yesterday, with stable outlook. Iceland’s credit rating has not been higher since in late 2008.
Moody’s reasons that the increase reflects the rapid and extensive progress made in the restoration of the Icelandic economy after the banking collapse in 2008, mbl.is reports.
Central Bank governor Már Guðmundsson told RÚV that the government’s plan on abolishing the capital controls were an important factor in Moody’s decision.
“They obviously approve [given that they’re] raising [the credit rating] by two points. And that came as a surprise. We didn’t expect two points up,” Már stated.
It is expected that Fitch Ratings and Standard & Poor’s will raise their credit ratings for Iceland following Moody’s announcement. Már believes that the higher credit rating will result in increased income for the national economy.