Financial and Mortgage Portfolio Overview
Iceland's credit rating has remained at A
Rating companies acknowledge the flexibility of the economy and resilience to the pandemic shock
Development of sovereign credit rating
AAA/Aaa
AA+/Aa1
AA/Aa2
AA-/Aa3
A+/A1
A/A2
A-/A3
Fitch in Dec-17:
Rating upgrade to A on economic
stability, reduced external
vulnerability and improvement in
government debt ratios,
supported by robust growth
S&P in Mar-17:
Rating upgrade to A on
lifting of capital controls;
outlook stable
Moody's in Nov-19:
Upgrade to A2 on sustained
sizeable debt reduction gains
and improvements in
economic resilience
BBB+/Baa1
BBB/Baa2
BBB-/Baa3
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2007
2008
2009
2010
2011
Moody's
2012
2013
2014
S&P Global
2015
2016
2017
2018
2019
2020
2021
Fitch
MOODY'S IN AUGUST 2021
"The credit profile of Iceland is supported by its
wealthy and flexible economy with favourable
demographics that support its long-term growth
prospects. Current-account surpluses have
contributed to a net external creditor position
and large foreign-currency reserves."
"The credit profile is mainly constrained by the
economy's small size and concentration in a
limited number of sectors, which increase its
vulnerability to shocks and cause volatility in
growth."
FITCH IN APRIL 2022
Rating affirmed at A with a stable outlook
"Iceland's 'A' rating is driven by its very high
income per capita, very strong governance,
human development and doing business
indicators that are more consistent with those of
'AAA' and 'AA' rated countries"
"The revision of the Outlook to Stable reflects
the resilience shown by the Icelandic economy
to the pandemic shock and Fitch Ratings'
expectation of a sustained growth recovery,
which should facilitate a fiscal deficit and debt
reduction over time."
S&P IN MAY 2022
"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."
Source: Moody's, S&P, Fitch Ratings and Central Bank of Iceland.
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August-September 2022View entire presentation