Iceland’s Long-Term Credit Rating Up Skip to content

Iceland’s Long-Term Credit Rating Up

Standard & Poor’s has increased its long-term credit rating for Iceland from BBB+ to A-. The main reasons are said to be two:

First, Iceland’s balance of payments performance exceeded the Standard & Poor’s forecast. The account surplus is estimated to have been about 5.4 percent last year, supported by a rapid growth in tourism.

Second, the Central Bank of Iceland’s foreign exchange reserves grew by more than 40 percent last year, indicating a stronger external position of the economy.

Standard & Poor’s expects the current account surpluses to persist over the 2017-2020 forecast horizon. Furthermore, the country’s general government debt level as a percentage of GDP is expected to continue to decrease.

Iceland’s short-term credit rating by Standard & Poor’s remains unchanged, at A-2, RÚV reports.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

Share article