We expect economic growth in Iceland will remain strong over the next few years, supported by the tourism sector and robust private consumption. Strong growth should help Iceland to continue to reduce general government debt as a percentage of GDP. We are affirming our ratings on Iceland at 'BBB+/A-2'. The stable outlook balances the potential for a faster-than-anticipated improvement in the country?s fiscal and balance-of-payments profiles over the next two years against the remaining risks surrounding capital control liberalization and the prospect of the economy overheating. On July 15, 2016, S&P Global Ratings affirmed its long and short-term foreign and local currency sovereign credit ratings on Iceland at 'BBB+/A-2'. The outlook is stable. Our ratings on Iceland remain supported by
