OVERVIEW We expect growth in the Republic of Iceland to average close to 3% during 2014-2017, supported by improving domestic demand. We project net general government debt to decline to 61% of GDP in 2017 from 71% in 2014. We are therefore revising our outlook on Iceland to positive from stable, and affirming the 'BBB-/A-3' long- and short-term sovereign credit ratings. The outlook revision reflects our view that there is a more than one-in-three likelihood that we could raise the ratings within the next 24 months if Iceland's growth performance remains strong and broad-based, while fiscal improvements continue. RATING ACTION On July 18, 2014, Standard&Poor's Ratings Services revised its outlook on the Republic of Iceland to positive from
