The international financial ratings agency, Fitch yesterday increased its long-term foreign currency debt rating for Iceland by one notch from BB+ to BBB-. The country’s short-term debt rating was also put up from B to F3.
The decision is more significant than it might first seem, because it brings Iceland out of the so-called junk investment grade and back into the group of investment grade nations. The country was put down to junk following its 2008 banking crash.
Fitch Ratings said in a statement that Icelanders have completed their International Monetary Fund recovery plan with good results and that the country has secured itself renewed access to world credit markets. An economic recovery in the country is underway and the financial sector restructuring programme is going well.
The company also notes that the Icesave dispute is less of a threat to the nation than ever and that Landsbanki has already begun paying back the money; but that it could still pose a hazard further down the line.
[…] its most vulnerable citizens, is too high. Balls and a true love of one's nation goes a long way Fitch raises Iceland credit rating out of junk | IceNews – Daily News Sign in or Register Now to […]
[…] Island už nie je junk. Island je krajinou, ktorej na rozdiel od zvyšku Európy za?al rating stúpa?. Pre?o je to dôležité? Island spravil to, ?omu sa európske nesolventné krajiny a menová únia stále bránia. Po kríze, ktorú ekonómovia hlavného prúdu a regulátor nevideli prichádza?, vy?istil dlhový chliev bankrotom a prilepil straty tam, kde vznikli a kam patria. Aj na Islande chceli najprv politici vyskúša? „európsky“, vo?i bankám priate?ský model, kde v?aka peniazom da?ových poplatníkov cez „solidaritu“ vo?i štátom zachra?ujeme verite?ské banky a investorov. […]
[…] On the plus side, Fitch upgraded the credit rating of Iceland, moving the country’s debt from “Junk” status to Investment Grade. Iceland was one of the first European countries to be downgraded in 2008, and has now regained credit worthiness having “completed [its] International Monetary Fund recovery plan with good results.” […]