...Outlook: Positive The positive outlook on Icelandic commercial bank Islandsbanki hf. reflects Standard & Poor's Ratings Services' view that the bank's stand-alone credit profile (SACP) is likely to develop alongside improvements in the Icelandic economy. We see a positive trend on the economic risk in the Icelandic banking sector and would expect to raise the ratings on Islandsbanki if we improved our view on the sector. We also anticipate that the bank will improve its capital ratios and asset quality metrics over the next two years, and make further progress in reducing the legacy equity and real estate risks that are on its balance sheet. We could take a positive rating action if the bank made a strategic decision to maintain capital commensurate with a RAC ratio securely above 15%, or if economic improvements in Iceland led us to reduce our risk weights for Icelandic exposures. The latter would better align the bank's internal capital targets with a higher assessment of capital and...
