LONDON (Standard&Poor's) Nov. 23, 2011--Standard&Poor's Ratings Services today revised to stable from negative its outlook on the Republic of Iceland. At the same time, we affirmed our long- and short-term sovereign credit ratings at 'BBB-/A-3'. The transfer and convertibility assessment is 'BBB-'. The ratings on Iceland are constrained by high external and public-sector debt that we believe could become heavier still, if not for capital controls limiting residents' ability to invest overseas and nonresidents' ability to exchange krona holdings for foreign currencies. The ratings are supported by what we view as Iceland's relatively prosperous and flexible economy, and its institutional capacity to address its financial sector problems and build an environment more conducive to sustainable economic
