S&P Global Ratings Affirms Iceland‘s ratings at ‘A/A-1'; Outlook Remains Stable

13.05.22
S&P Global Ratings Affirms Iceland‘s ratings at ‘A/A-1'; Outlook Remains Stable

International rating agency S&P Global Ratings has affirmed Iceland‘s sovereign ratings at A/A-1 with a stable outlook.

Iceland's economy has continued to recover, growing by more than 4% in 2021 backed by strong domestic demand. S&P expects that the Russia-Ukraine conflict will have a limited impact on Iceland's economy given its minimal direct trade links with those countries and overall limited need for energy commodity imports. The agency also expects fiscal consolidation to accelerate this year, with government debt net of liquid assets settling at about 42% of GDP over the medium term.
The stable outlook indicates S&P‘s expectation that Iceland's economy will continue to recover and remain relatively unaffected by the war in Ukraine. The agency believes fiscal deficits will continue to decrease over the next few years, stabilizing the debt to GDP ratio net of liquid assets. At the same time, ample foreign reserves will enable the CBI to deal with external pressures or exchange-rate volatility, should they occur.

According to S&P, the agency could raise the ratings if economic growth exceeds expectations, which would likely coincide with stronger export growth and export categories becoming more diverse, reducing external debt or the volatility in Iceland's terms of trade. The agency could lower the ratings if the effects of the war in Ukraine became more pronounced, for example through second-round effects due to lower economic activity in Iceland's main trading partners in Europe or a shift in global travel preferences. The latter could also occur if the pandemic re-emerged, particularly in the form of new and more malignant variants.

S&P press release (pdf)

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Oct 20 2025
Treasury Bonds
Market making for RIKS 50 0915 begins

Following the auction held on October 17, 2025, and with reference to the Primary Dealer Agreement concerning issuance of government securities and market making in the secondary market dated March 21, 2025, it has been decided to begin market making with RIKS 50 0915 from the Settlement date of the auction, i.e. October 22, 2025. Primary dealers will be obliged to submit bids and offers for a minimum nominal value of 50 m.kr. in the series. From the same date repo facilities to each primary dealer will be 2 bn.kr. nominal value.

Further information can be obtained from Government Debt Management at tel: +354 569 9994 or by email to [email protected].

Oct 15 2025
Inflation-linked Treasury Bonds
Treasury Bond Auction Announcement - RIKS 50 0915 - Switch Auction or Cash payment
Series RIKS 50 0915
ISIN IS0000037794
Maturity Date 09/15/2050
Auction Date 10/17/2025
Settlement Date 10/22/2025
10% addition 10/21/2025
 
Buyback issue RIKS 26 0216
Buyback price (clean) 98.4800

On the Auction Date, between 10:30 a.m. and 11:00 a.m., the Government Debt Management will auction Treasury bonds in the Series, with the ISIN number and with the Maturity Date according to the table above. Article 6 of the General Terms of Auction for Treasury bonds applies for the right to purchase an additional 10%. The Treasury bonds will be delivered in electronic form on the Settlement Date.

Payment for the bonds can be made in cash or with the Buyback issue at the Buyback price.

Payment in cash for the Treasury bonds must be received by the Central Bank before 14:00 on the Settlement Date. If payment is made with the Buyback issue, a notification of the amount must be received no later than by 14:00 on the Auction Date. In that case, the value of the Buyback bond is determined by the Buyback price plus accrued interest and indexation (i.e. dirty price).

No fee is paid in relation to the purchase of RIKS 26 0216.

Further reference is made to the description of the Treasury bond and the General Terms of Auction of Treasury Bonds.

For additional information please contact Oddgeir Gunnarsson, Government Debt Management, at +354 569 9635.