S&P Research Update Republic of Iceland Ratings Raised To 'A/A-1' OnLifting Of Capital Controls

S&P has raised Republic of Iceland Ratings to 'A/A-1' on lifting of capital controls. Outlook is stable. S&P say:

• We believe that the recent lifting of most of the remaining capital • controls andthe conclusion of an agreement with the owners of offshore krona assets strengthenIceland's external profile. 
• We are therefore raising our long- and short-term ratings on Iceland to 'A/A-1'from 'A-/A-2'. 
• The stable outlook reflects our view that the potential for improvements inIceland's public finances is balanced by the risk of the domestic economyoverheating over the next two years. 

The new S&P global rating, about Iceland