LONDON (Standard&Poor's) June 5, 2006--Standard&Poor's Ratings Services said today it revised its outlook on the Republic of Iceland to negative from stable, on the increasing likelihood of a hard landing for the country's economy. At the same time, Standard&Poor's affirmed its long-term 'AA-' foreign and 'AA+' local, and its short-term 'A-1+' foreign and local currency sovereign credit ratings on the republic. Standard&Poor's also revised the outlook on its long-term foreign currency issuer credit rating on Ibudalanasjodur, the Icelandic Housing Financing Fund (HFF), to negative from stable, and affirmed its 'AA-' long- and 'A-1+ short-term foreign currency credit ratings on HFF. The 'AA+' long-term and 'A-1+' short-term local currency ratings remain on CreditWatch
