NY -- Standard&Poor's CreditWire 3/15/96 -- Standard&Poor's raises its long-term foreign currency debt rating of the Republic of Iceland to single-`A'-plus from single-`A' and its short-term rating to `A-1'-plus from `A-1'. Standard&Poor's assigns its double-`A'-plus rating to Iceland's long-term local currency debt. The rating outlooks are stable. The upgrade reflects improved macroeconomic management, which in combination with stronger control of the country's marine resources, lessens Iceland's vulnerability to external shocks. Increased fiscal and monetary flexibility should reduce a still high net public external debt burden and secure more stable economic growth. The higher local currency rating is supported by Iceland's greater ability to service Icelandic krona debt, because of its taxation powers and control
