Fitch Revises Iceland ́S Outlook To Positive Affirms IDR At 'A'

(MENAFN- GlobeNewsWire - Nasdaq) Fitch Ratings has revised the Outlook on Iceland's Long-Term-Foreign-Currency (LT FC) Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at 'A'.

The Positive Outlook reflects Iceland ́s strengthened public finances. General government debt is projected to fall significantly in 2025 after the successful settlement of the Housing Financing Fund ́s (HF Fund) liabilities and the full privatisation of Islandsbanki. Progress continues in diversifying the economy into higher-value-added sectors, such as pharmaceuticals, ICT and biotechnology. Iceland's abundant renewable energy sources and competitive energy prices have attracted investments in energy-intensive data centres. There is also strong potential in aquaculture, where Iceland has a global competitive advantage.

Increased confidence in a material and sustained decline in the government debt/GDP ratio and continued strong growth and evidence of economic diversification that reduces Iceland's vulnerability to external shocks, could individually or collectively lead to positive rating action.

A marked deterioration in the debt/GDP trajectory, for example, from a sustained period of fiscal loosening or a severe economic shock, for example, from a significant slowdown in the global economy, could individually or collectively lead to negative rating action.

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