The Icelandic parliament has approved the Icesave agreement, a step that will contribute significantly to securing crucial external financing throughout 2010. We are revising our outlook on Iceland's sovereign ratings to stable from negative. We are affirming our 'BBB-/A-3' foreign currency and 'BBB+/A-2' local currency ratings on the sovereign. The stable outlook balances the challenges of the high public debt ratio and remaining external vulnerabilities with our belief that Iceland's economy and institutions have above-average flexibility to deal with these challenges. FRANKFURT (Standard&Poor's) Dec. 31, 2009--Standard&Poor's Ratings Services said today that it has revised its outlook on the Republic of Iceland's sovereign ratings to stable from negative. At the same time, we affirmed our long- and
