LONDON (Standard&Poor's) Feb. 10, 2005--Standard&Poor's Ratings Services said today it raised its long-term foreign currency sovereign credit rating on the Republic of Iceland to 'AA-' from 'A+', and affirmed the 'AA+' long-term local currency and the 'A-1+' short-term foreign and local currency ratings. The outlook is stable. "The upgrade reflects significant and sustained improvements in the resilience and structure of the Icelandic banking sector, as well as the positive perspective for public finances, which should lead to a rapid decline in general government debt levels," said Standard&Poor's credit analyst Kai Stukenbrock. The financial sector in Iceland has recovered from the imbalances created by the pre-2001 lending boom. Improved regulation and supervision, as well as
