We expect the currently overheated Icelandic economy to gradually cool down over the next few years. The current account balance will weaken as tourism sector growth moderates amid the Icelandic krona's rapid appreciation. At the same time, we forecast continued strong fiscal performance with net general government debt stabilizing at 30% of GDP over the next four years. We are affirming our 'A/A-1' ratings on Iceland. The outlook is stable. On June 8, 2018, S&P Global Ratings affirmed its long- and short-term foreign and local currency sovereign credit ratings on the Republic of Iceland at 'A/A-1'. The outlook is stable. The stable outlook balances the risks stemming from the domestic economy overheating against the potential for more rapid improvements in
