Article: ICELAND: MOODY'S DOWNGRADES ICELAND'S RATINGS TO AA1.

Moody's Investors Service has downgraded Iceland's government bond ratings to Aa1 from Aaa (negative), and has also lowered the foreign currency country ceiling for bank deposits to Aa1 from Aaa. All other ratings -- including the foreign currency country ceiling for debt, the local currency bank deposit ceiling, and the local currency ceiling for bonds -- are affirmed at Aaa, and all ratings now carry a stable outlook. Moody's published a special comment in January, "Iceland's Aaa Ratings at a Crossroads," that explained why, despite its considerable credit strengths, Iceland displayed characteristics that seemed increasingly at odds with a Aaa-rated country. That ...

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