Jul 20 2018
Moody’s changes Iceland’s outlook to positive from stable and affirms A3 ratings

Moody’s Investors Service ("Moody’s") has today changed the Government of Iceland's sovereign rating outlook to positive from stable and affirmed Iceland’s A3 long-term issuer rating. The government's long-term senior unsecured debt rating of A3 and the (P)A3 and (P)Prime-2 ratings assigned to its medium-term note (MTN) programme have also been affirmed. 

The key drivers for the change in the rating outlook to positive from stable are: 

  1. Improving economic resilience afforeded by net external creditor position, more balanced growth and ongoing strengthening of the country‘s banking system. 
  1. Anticipated further improvement in the government‘s debt metrics beyond what was previously expected. 

The positive outlook also reflects progress made in the past two years on the major preconditions we laid out at the time of the upgrade to A3 in September 2016, including the smooth removal of capital controls and the settlement of the offshore krónur situation.

Report

More news

Switch auction of nominal bonds RIKB 20 0205 for RIKB 19 0226

On Friday, 19 October at 11:00 am, Government Debt Management will conduct an auction of Treasury bonds. 

In this auction nominal bonds RIKB 20 0205 will be offered. The total amount of accepted bids will be announced after the auction. 

NOTE it is only possible to purchase bonds in RIKB 20 0205 with the sale of RIKB 19 0226, which matures on 26 February 2019. Government Debt Management will purchase RIKB 19 0226 at a pre-determined price – that is, at a clean price of 101.219 (106.972425 with accrued interest per 100 nominal value) – with settlement on 24 October 2018. To clarify, this price is equivalent to 4.93% yield. The value of the bond, together with accrued interest, will constitute payment for the new issued bonds.

Press release (pdf)
Auction terms (pdf)

Results of additional issuance of Treasury bonds RIKB 22 1026

As stated in paragraph 5 of Terms of Invitation to Tender for Treasury bonds, the Government Debt Management offered the equivalent of 10% of the nominal value sold in the auction 21 September, at the price of accepted bids. This time Primary Dealers did not exercise their right to purchase in RIKB 22 1026. Total outstanding nominal value of RIKB 22 1026 is now 88,182,800,000 kr. Settlement date is 26 September 2018.