Standard and Poor’s Lowers Iceland’s Credit Rating Skip to content

Standard and Poor’s Lowers Iceland’s Credit Rating

Standard and Poor’s (S&P) has dropped Iceland’s credit rating from ‘stable’ to ‘negative,’ warning that the government’s plan to write-off household debt could pose significant fiscal risk.

centralbank_ipaIceland’s Central Bank. Photo copyright Icelandic Photo Agency.

Iceland, however, holds on to its BBB-/A-3 long and short-term foreign and local currency sovereign credit ratings.

According to the rating agency, the plan to cut household debt weakens the agency’s “assessment of the effectiveness and predictability of policymaking,” as stated in a press release.

The Icelandic government has challenged S&P’s decision, ruv.is reports.

ZR

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