Fitch Affirms Iceland at ‘A’; Outlook Stable

Fitch Ratings has affirmed Iceland’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A’ with a Stable Outlook.

Iceland's 'A' rating is underpinned by its very high income per capita and governance indicators that are more consistent with those of 'AAA' and 'AA' rated sovereigns. Sizeable buffers, including ample foreign reserves and a large fiscal cash buffer, help mitigate Iceland’s external vulnerabilities. Strong fundamentals include sizeable pension fund assets, a sound banking sector, and strong private sector balance sheets.The rating remains constrained by Iceland's small economy with limited export diversification and high  public debt.