Today, Standard & Poor's revised its outlook on Íslandsbanki to positive from stable. The 'BBB-/A-3' long- and short-term counterparty credit ratings were affirmed.
According to S&P the economic resilience in Iceland is likely to strengthen following significant progress toward lifting capital controls. The compositions of the failed Icelandic banks estates have been agreed, significantly reducing risk from the eventual removal of capital controls. With more resilient economy and lower risk from potential large swings in the exchange rate S&P notes a positive economic risk trend for banks in Iceland. This should improve Icelandic nonsovereign borrower's access to foreign markets. The positive outlook indicates that S&P could raise the ratings if Islandsbanki's credit profile would strengthen in an improving operating environment.
On Friday, S&P raised Iceland's ratings to BBB+ on further progress toward capital account liberalization and declining debt levels.