On March 16, 2006, Standard&Poor's Ratings Services affirmed its 'AA-' long-term foreign currency and 'AA+' long-term local currency sovereign credit ratings on the Republic of Iceland. At the same time, the 'A-1+' short-term foreign and local currency ratings on Iceland were affirmed. The outlook is stable. The ratings on Iceland are supported by its stable political institutions, a very wealthy and flexible economy, and healthy public finances. The ratings remain constrained by very high levels both of external financing needs and of external debt throughout the economy. Iceland boasts stable and flexible political institutions, which enjoy broad public backing. The country's flexible economy generates one of the highest per capita GDP levels in the world. Growth is forecast
