Fitch Downgrades Rating on Iceland to BB+, Outlook Negative

Jan. 5 (Bloomberg) -- Fitch Ratings downgraded Iceland’s credit rating to junk after President Olafur R. Grimsson blocked a depositor accord with the U.K. and Netherlands that rating services had said was key to the island’s economic resurrection.

Fitch cut the long-term foreign and local currency issuer default ratings to ‘BB+’ and ‘BBB+’ from ‘BBB-’ and ‘A-’ respectively, the rating service said in a statement today. The outlooks on both long-term ratings are negative. Fitch also downgraded Iceland’s short-term foreign currency IDR to ‘B’ from ’F3’ and cut the country ceiling to ‘BB+’ from ‘BBB-’.

 

Instead of a race to bottom, will we just point fingers at other currencies while we print like mad? Get a quick pop on our currency at the expense of some poor s.o.b and print more...