Following the nationalization of Glitnir Bank yesterday, financial research company Standard & Poor’s lowered the credit rating for the Icelandic state from stable to negative.
The company also lowered Glitnir’s credit rating which remains negative, Fréttabladid reports.
A report from Standard & Poor’s states that the low debt of the Icelandic state enables it to live up to its declaration in regards to Glitnir and is also capable of providing the financial system with liquid resources in the short term if necessary.
However, the size of the financial system in comparison to the state can have a negative impact, which is why its credit rating was downgraded, Standard & Poor’s reasons.
Click here to read more about the nationalization of Glitnir Bank.