We believe that the recent lifting of most of the remaining capital controls and the conclusion of an agreement with the owners of offshore krona assets strengthen Iceland's external profile. We are therefore raising our long- and short-term ratings on Iceland to 'A/A-1' from 'A-/A-2'. The stable outlook reflects our view that the potential for improvements in Iceland's public finances is balanced by the risk of the domestic economy overheating over the next two years. On March 17, 2017, S&P Global Ratings raised its long- and short-term foreign and local currency sovereign credit ratings on Iceland to 'A/A-1' from 'A-/A-2'. The outlook is stable. As a "sovereign rating" (as defined in EU CRA Regulation 1060/2009 ("EU CRA Regulation"), the ratings
