67919
Fitch Upgrades Iceland
Fitch Upgrades Iceland

Fitch Upgrades Iceland

Fitch Upgrades Iceland

As it returns to financial normality nearly a decade after a devastating banking crisis, Iceland’s “robust economic growth” has prompted ratings agency Fitch to upgrade the Nordic country’s sovereign rating.
Fitch on Friday said it was raising Iceland’s rating from BBB+ to A- and assigning it a positive outlook, Reuters reported.
Despite its recent move to lift capital controls put into place in 2008 following the implosion of its three largest banks, Iceland’s currency, the krona, has strengthened, appreciating by 20.1% against the US dollar and 17.3% against the euro from the start of the 2017 until the end of June, Fitch analysts noted.
The agency said that liberalizing capital controls on residents—a process that started in 2016 and wrapped up in March—had not led to a massive outflow of capital.
The external vulnerabilities of the island nation’s economy has also been “reduced considerably”, the report said, with strong current account surpluses and capital inflows bolstering external finances. And tourism demand has remained strong, which Fitch expects to continue for the foreseeable future.
Fitch analysts wrote: “Robust economic growth has supported the improvements in public indebtedness and external finances…. Fitch has revised its growth forecast for 2017 up to 5.6%, but expects growth to moderate to 3.7% by 2019. However, domestic cost pressures resulting from the above-trend growth and wage rises, coupled with the appreciating real exchange rate could lead to overheating and exposes the economy to the risk of a contraction in tourism activity.”
Fellow rating agency Moody’s has set Iceland’s rating at A3, while S&P recently affirmed its A/A-1 rating on the country.

Short URL : https://goo.gl/qbUFhL
  1. https://goo.gl/FoJNto
  • https://goo.gl/gFbrTp
  • https://goo.gl/xq2q4L
  • https://goo.gl/6Hqiix
  • https://goo.gl/7MFdbH

You can also read ...

Thai CB Retains Key Rate
Thailand’s central bank on Wednesday left its key interest...
China and India continue to remain the most promising investment destinations in 2017.
Developing Asia is expected to witness a 15% increase in...
Brazil Raises Deficit Ceiling
Brazil is raising its deficit ceiling for this year and 2018...
Elon Musk, Kevin Plank, Bob Iger, Richard Trumka, Kenneth Carleton Frazier
The honeymoon is definitely over. When US President Donald...
Riksbank is under pressure to tighten its ultra-loose monetary policy.
Underlying inflation topped the Swedish central bank’s target...
Crude oil accounts for 96% of exports and around half of state revenue.
Venezuela might look bad right now amid protests, scarce food...
At 310% GDP, China’s banking sector is above the advanced economy average and nearly three times  the emerging market average.
China's economy is looking good enough that the International...
US Household Debt at $12.8 Trillion
US household debt reached a new record in the second quarter,...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus