S&P Places Iceland Ratings On CreditWatch Negative Following Icesave Veto

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Tuesday, rating agency Standard & Poor's announced that it placed Iceland's credit ratings on CreditWatch Negative following the Icesave veto. The rating agency said it may lower the country's ratings by one to two notches within a month.

It placed its 'BBB-/A-3' foreign currency and 'BBB+/A-2' local currency sovereign credit ratings on the Republic of Iceland on CreditWatch with negative implications.

S&P said the Icesave veto decision by the President Olafur Ragnar Grimsson could lead to delays to and revisions of the International Monetary Fund programme.

"As a result of the veto, we expect that disbursements on the remaining $2.3 billion balance under the IMF program will be delayed and the parameters of the program might have to be reworked, possibly including raising the required primary surplus targets," said Standard & Poor's credit analyst Kai Stukenbrock.

Elsewhere on Tuesday, Fitch Ratings cut Iceland's credit ratings to 'BB+' from 'BBB-' and to 'BBB+' from 'A-', respectively. The outlooks on both long-term ratings are negative.

Tuesday, rating agency Standard & Poor's announced that it placed Iceland's credit ratings on CreditWatch Negative following the Icesave veto. The rating agency said it may lower the country's ratings by one to two notches within a month. (Market News Provided by RTTNews)