On June 19, 2003, Standard&Poor's Ratings Services affirmed its 'AA+/A-1+' local currency and 'A+/A-1+' foreign currency ratings on the Republic of Iceland. The outlook is stable. The ratings on the Republic of Iceland are supported by: Stable and flexible political institutions, enjoying broad public backing and a long tradition of stable coalition governments. A wealthy and flexible economy, with one of the highest per capita GDPs in the world. The flexibility of Iceland's economy was highlighted by the swift reaction to imbalances that had mounted during the credit-fuelled boom of 1996-2000. Credit growth slowed to virtually zero in 2002 from 44% in 2000, and the current account returned to a surplus of 0.3% of GDP from a deficit
