Over the next several months, we expect Iceland to address its sizable balance-of-payments overhang and start to gradually ease the capital controls. In our view, the government's proposed measures will be beneficial for investor sentiment and improve access to foreign capital markets for nonsovereign issuers. They could also yield material one-off fiscal revenues for the government. We are therefore raising our long- and short-term ratings on Iceland to 'BBB/A-2' from ?BBB-/A-3?. The outlook is stable, indicating that the risks to the ratings are balanced, in our view. On July 17, 2015, Standard&Poor's Ratings Services raised its long- and short-term foreign and local currency sovereign credit ratings on the Republic of Iceland to ?BBB/A-2? from 'BBB-/A-3'. The outlook is
