May 24 2019
Fitch ratings upgrades Iceland´s ST ratings to F1+; affirms LT ratings at A stable

Today Fitch ratings has published a new report on Iceland´s sovereign ratings. Iceland´s Short-Term (ST) foreign- and local currency ratings are upgraded to F1+ from F1, in line with the agency´s publication from 3rd of May. Iceland´s Long-Term (LT) ratings are affirmed at A with stable outlooks. Iceland´s country ceiling was also raised from A to A+, due to the almost full lifting of capital controls.

As stated in Fitch´s press release, the collapse of Wow air as well as the current absence of fishable capelin stock in Icelandic waters, are among the factors that have led to a worsening economic outlook for 2019. However, the agency assumes that economic growth will return in 2020 and be positive by 2.5%. The announcement also points to the recent relative stability of the Icelandic krona despite the lifting of capital controls and Wow air´s collapse.  

The main factors that could lead to a positive rating action are a continued fall in the public debt ratio, supported by prudent fiscal policy, and a sustained improvement in the external balance sheet and increased resilience of the economy to external shocks.

The main factors that could lead to a negative rating action are a sustained and sharper than expected economic downturn, impacting on the banking sector and leading to excessive capital outflows, jeopardising financial stability and weakening external buffers.

Fitch´s update (pdf)

More news

Results of additional issuance of RIKB 21 0805

As stated in paragraph 6 in General Terms of Auction for Treasury bonds, the Government Debt Management offered the equivalent of 10% of the nominal value sold in the auction 6 December, at the price of accepted bids. This time Primary Dealers did not exercise their right to purchase in RIKB 21 0805. Total outstanding nominal value of RIKB 21 0805 is now 11,875,000,000 kr. Settlement date is 11 December 2019.

Treasury Bond Auction Announcement - RIKB 21 0805
Series RIKB 21 0805
ISIN IS0000031482
Maturity Date 08/05/2021
Auction Date 12/06/2019
Settlement Date 12/11/2019
10% addition 12/10/2019

On the Auction Date, between 10:30 am and 11:00 am, the Government Debt Management will auction Treasury bonds in the Series, with the ISIN number and with the Maturity Date according to the table above. Payments for the Treasury Bonds must be received by the Central Bank before 14:00 on the Settlement Date, and the Bonds will be delivered in electronic form on the same day. For an additional 10% see Article 6 of the General Terms of Auction Treasury Bonds.

For further information, please refer to the Government Debt Management website, i.e. for the description of the Treasury bond and the General Terms of Auction of Treasury Bonds.

For additional information please contact Oddgeir Gunnarsson, Government Debt Management, at +354 569 9635.

Treasury Bill Auction Announcement - RIKV 20 0715
Series RIKV 20 0715
ISIN IS0000031623
Maturity Date 07/15/2020
Auction Date 11/28/2019
Settlement Date 12/02/2019

On the Auction Date, between 10:30 am and 11:00 am, the Government Debt Management will auction Treasury bills in the Series, with the ISIN number and with the Maturity Date according to the table above. Payments for the Treasury Bills must be received by the Central Bank before 14:00 on the Settlement Date, and the Bills will be delivered in electronic form on the same day.

Further reference is made to the General Terms of Icelandic Treasury bills and General Terms of Auction for Treasury bills on the Government Debt Management website.

For further information please contact Oddgeir Gunnarsson, Government Debt Management, at +354 569 9635.