Published July 27, 2012
Financial analysts Moody’s have released a new credit report on Iceland. Meanwhile, the economy continues to recover.
While Moody’s has been cautiously optimistic about Iceland’s overall economy, their latest credit analysis once again offers a mixed – but more negative – outlook on Iceland.
In its annual credit report on Iceland, Moody’s Investors Service says that Iceland’s Baa3 government bond rating is based on the country’s moderate economic and high institutional strength as well as low government financial strength and high susceptibility to event risk. The downside risks facing Iceland’s sovereign creditworthiness are reflected in the currently negative outlook on the rating.
In related news, Iceland’s economy continues to recover. Inflation is now at 4.6%, decreasing by 0.7% from the month previous. Unemployment is also quite low, at 5.2%. Also of note: the number of bankruptcies has decreased by 30% from this same time last year.