We expect growth in the Republic of Iceland to average close to 3% over 2015-2018, supported by strong private consumption and rising investments. We expect the government's budgetary policies to result in net debt levels declining as a percentage of GDP through 2018. We are therefore affirming our 'BBB-/A-3' long- and short-term sovereign credit ratings on Iceland. The outlook remains positive, indicating that there is more than a one-in-three chance of an upgrade in the next two years. On Jan. 16, 2015, Standard&Poor's Ratings Services affirmed its 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Iceland. The outlook remains positive. The ratings are supported by Iceland's high productivity and income levels and positive long-term
