Iceland at Credit Rating Risk - The Reykjavik Grapevine

Iceland at Credit Rating Risk

Published June 22, 2009

The Telegraph reports that Iceland is in danger of hitting dangerously
low credit ratings. The Minister of Finance says steps are being taken
to help bring the rating up.
Economic analysts Fitch and Standard & Poor’s both rate Iceland’s debt as BBB- – one
grade above junk. Moody’s ranks it as Baa1, three notches above
non-investment grade.
Minister of Finance Steingrímur J. Sigfússon told the Telegraph, “We’re obviously concerned, and people in the finance ministry and
central bank are meeting with rating companies, not only Fitch, and
discussing these things. Certain steps are
being taken to monitor the situation that will have an effect on the
eventual outcome of the rating.”
Iceland is already struggling to turn its economic situation around, as the majority coalition is trying to pass several budget cuts in parliament, and is currently trying to also convince parliament to accept the current Icesave deal (which can be read, in English, here: The British dealThe Dutch deal).

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