Fitch ratings upgrades Iceland´s ST ratings to F1+; affirms LT ratings at A stable

Today Fitch ratings has published a new report on Iceland´s sovereign ratings. Iceland´s Short-Term (ST) foreign- and local currency ratings are upgraded to F1+ from F1, in line with the agency´s publication from 3rd of May. Iceland´s Long-Term (LT) ratings are affirmed at A with stable outlooks. Iceland´s country ceiling was also raised from A to A+, due to the almost full lifting of capital controls.

As stated in Fitch´s press release, the collapse of Wow air as well as the current absence of fishable capelin stock in Icelandic waters, are among the factors that have led to a worsening economic outlook for 2019. However, the agency assumes that economic growth will return in 2020 and be positive by 2.5%. The announcement also points to the recent relative stability of the Icelandic krona despite the lifting of capital controls and Wow air´s collapse.  

The main factors that could lead to a positive rating action are a continued fall in the public debt ratio, supported by prudent fiscal policy, and a sustained improvement in the external balance sheet and increased resilience of the economy to external shocks.

The main factors that could lead to a negative rating action are a sustained and sharper than expected economic downturn, impacting on the banking sector and leading to excessive capital outflows, jeopardising financial stability and weakening external buffers.

Fitch´s update (pdf)

Aðrar fréttir

Jun 12 2024
Treasury Bills
Treasury Bill Auction Announcement - RIKV 24 0821 - RIKV 24 1218
Series RIKV 24 0821 RIKV 24 1218
ISIN IS0000036069 IS0000036499
Maturity Date 08/21/2024 12/18/2024
Auction Date 06/14/2024 06/14/2024
Settlement Date 06/19/2024 06/19/2024

On the Auction Date, between 10:30 am and 11:00 am, the Government Debt Management will auction Treasury bills in the Series, with the ISIN numbers and with the Maturity Dates according to the table above. Payments for the Treasury bills must be received by the Central Bank before 14:00 on the Settlement Date and the Bills will be delivered in electronic form on the same day.

Further reference is made to the General Terms of Icelandic Treasury bills and General Terms of Auction for Treasury bills on the Government Debt Management website.

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

Jun 05 2024
Treasury Bonds
Treasury bond auctions cancelled

The Government Debt Management has decided to cancel the last two Treasury bond auctions that were scheduled in Q2/2024 since the target amount for the quarter has already been reached.