By Stephen Nakrosis
S&P Global Ratings on Friday said it was upgrading the nation of Iceland to A+ from A, with a stable outlook.
In addition to raising its long-term ratings on Iceland, S&P also affirmed the country’s A-1 short-term ratings.
S&P said the upgrade reflects strong growth momentum in Iceland. Strong tourism is expected to contribute to real GDP growth of 3.8% this year, while and domestic demand should also contribute to growth the next few years, S&P said.
“The stable outlook reflects our view that Iceland’s economy will continue to expand over the next two years, while recording only modest fiscal and current account deficits,” S&P said.
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