Moody's Places Iceland's Rating On Review For Upgrade

(RTTNews) - Moody's Investors Service on Friday placed the sovereign ratings of Iceland on review for upgrade.

The agency said it will evaluate whether the government's new fiscal strategy and tax reform would further improve its debt sustainability in the medium term.

Moody's will also determine whether the upcoming election poses any risk to their implementation.

The rating agency expects government debt to decrease materially in the near term due to funds and assets received from the creditors of the failed bank estates in last year's winding-up operations.

Another key driver of the review was to determine whether the upcoming auction of offshore krónur assets would be effective in reducing vulnerabilities in the country's external position and thus facilitates the generalized liberalization of capital controls.