Lánamál ríkisins - Company Announcement

Moody's upgrades Iceland's rating

New York, June 29, 2015 -- Moody's has upgraded the government of Iceland's
government debt ratings to Baa2 from Baa3. The rating outlook is stable. 

The upgrade reflects the following key drivers:

  1. The initiation of a careful process of capital account liberalization that
     is expected to reduce the country's
     external vulnerabilities, while protecting economic and financial
     stability;
  2. Expectation of further improvement in the government's gross and net debt
     position over the next three to four
     years, thanks to robust growth, further fiscal consolidation and debt
     pre-payments;
  3. Improvements to macro-prudential and micro-prudential regulation designed
     to preserve the stability of Iceland's
     financial system in the future.

In a related decision, Moody's raised Iceland's country ceilings for long- and
short-term foreign currency debt and deposits to Baa2/P-2 from Baa3/P-3, and
its country ceilings for local currency debt and deposits to Baa1 from 
Baa2.

Attached find Moody´s report

Attachments:

Moodys Iceland 29 June 2015.pdf