Fitch Affirms Sovereign Ratings, Revises Outlooks to Stable from Negative

Fitch Ratings has revised the Outlooks on Iceland’s
Long-term Foreign and Local Currency Issuer Default Ratings (IDRs) of ‘BB+’ and ‘BBB+’
respectively to Stable from Negative. The Foreign Currency Short-Term IDR is affirmed at
‘B’ and the Country Ceiling at ‘BB+’. Fitch says that this positive rating action on Iceland, its
first since 2006, reflects a reassessment of the near term impact on sovereign creditworthiness
of the popular rejection of the ‘Icesave’ agreement in a national referendum on 9 April.