TEXT-S&P affirms Iceland's 'BBB-/A-3' ratings

Overview

-- We view Iceland as having the institutional capacity to address financial sector problems and build an environment more conducive to job creation and sustainable economic growth.

-- We expect the economy to continue to expand by 2%-3% annually between 2012 and 2015.

-- External and public-sector debt levels are high but we expect fiscal consolidation to continue.

-- We are affirming our 'BBB-/A-3' long- and short-term sovereign credit ratings on Iceland.

-- The stable outlook balances our view of Iceland's improved economic fundamentals with downside risks associated with capital controls being lifted over the next few years.

http://www.reuters.com/article/2012/10/17/idUSL1E8LHC4U20121017?type=marketsNews