The ratings on the Republic of Iceland are supported by: A substantially strengthened fiscal position. With the domestic savings rate falling below 14% of GDP, the government has partly counteracted this decline by running growing surpluses, estimated to reach 2.9% of GDP in both 2000 and 2001. This compares very favorably with its 'A' rated peers, which generally run deficits. As a result, general government debt has fallen to 44% of GDP in 2000 and 2001 from 59% in 1995. Very high per capita income. With per capita income of about $28,000, Iceland is easily the most prosperous of 'A' rated sovereigns. Long-standing social and political stability and ongoing economic diversification are reducing the dependence on the fishing sector. Iceland's
