LONDON (Standard&Poor's) May 16, 2008--Standard&Poor's Ratings Services said today that the strengthening of access to foreign exchange by the Republic of Iceland (foreign currency A/Negative/A-1, local currency AA-/Negative/A-1+) would have no immediate effect on either its ratings or outlook on the sovereign. The action by Iceland is a positive step towards containing the deleterious effect of high financial sector borrowing costs on its already very large current account deficit, which is expected to widen to 16.2% of GDP in 2008 from 15.6% of GDP in 2007. The €1.5 billion euro/Icelandic krona bilateral swap facility with the central banks of Sweden, Norway, and Denmark (all three rated AAA/Stable/A-1+), combined with other sources and existing reserves, provides Iceland's
