Iceland no longer appears in the top ten list of countries most likely to collapse into complete bankruptcy, and is now listed as a sovereign tightener, showing decreased risk and greater stability. This marks the first time since autumn 2008 that Iceland does not appear on the list.
The ratings are conducted by CMA, which is a credit information subsidiary of derivatives exchange company CME Group.
The list, available here under “Highest Default Probabilities”, shows Greece topping the list at the moment, with a Cumulative Probability of Default (CPD) of 52.71%. Venezuela also has a CPD greater than half, at 51.15%.
In fact, Iceland appears to be moving in the opposite direction, towards a position of decreasing risk. The country is rated as a sovereign tightener, meaning improving credit and less chance of default.
Iceland has been moving into a strengthening position lately, with an International Monetary Fund review of the country predicting that unemployment will continue to decrease, and Moody’s raising Iceland’s rank to Stable just two weeks previous.