On Dec 16, 2003, Standard&Poor's Ratings Services revised its foreign currency outlook on the Republic of Iceland to positive from stable. At the same time, all the ratings on Iceland were affirmed, including the 'A+/A-1+' foreign currency and 'AA+/A-1+' local currency sovereign credit ratings. The local currency outlook remains stable. The revision of the foreign currency outlook reflects Standard&Poor's positive reappraisal of developments in the financial sector, as well as the beneficial impact of large-scale investments on the structure of the economy and its growth prospects. The ratings on Iceland are supported by its stable political institutions, a wealthy and flexible economy, and healthy public finances. The ratings remain constrained by very high levels of external
