Moody’s Iceland rating remains unchanged

The international credit ratings agency Moody’s has decided to keep Iceland’s rating unchanged, one level above ‘junk’ status. The news has been welcomed in Reykjavik after the company indicated that a ‘no’ vote in the recent Icesave referendum would likely result in a downgrade for the country.

Iceland’s Minister of Finance Steingrimur J. Sigfusson says he is satisfied with the outcome of last weekend’s meeting with Moody’s in Washington DC.

A statement from Moody’s explains the decision saying that it has now come to light that Britain and the Netherlands will get paid out from the estate of the bankrupt Landsbanki this year and that the amount is set to be more than previously expected — despite the ‘no’ vote. The company also notes that the IMF recovery programme continues on track.

Continued investment-grade classification means Iceland’s access to international finance markets remains unchanged and the cost of borrowing will not make a sudden jump.

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Source: IceNews, Daily news from Iceland