The credit rating companies that were too slow in predicting Icelandâs economic collapse in 2008 may be underestimating the strength of its resurrection. .... Icelandâs experience shows the rating companies may be overcompensating after failing to identify some of the risks that led to the global financial crisis, said Armann. While Moodyâs kept a Aaa rating on Iceland until five months before its banks collapsed, reluctance to raise the islandâs credit grade now is blocking the countryâs access to a broader investor base. Debt derivatives show the low ratings may be unwarranted as credit default swaps on Iceland indicate itâs less likely to default than euro member Spain. âIf things turn out better than expected, the rating can move up,â said Paul Rawkins, a senior director at Fitch in London, in a phone interview. Still, there are âuncertainties that need to be taken into account,â he said. âNo Discrepancyâ Moodyâs head of media relations for Europe, the Middle East and Africa, Dan Piels, said the companyâs ratings âreflect a multitude of factors, only one of which is access to international bond markets,â in an e-mailed reply to questions. âThere is no discrepancy in the ratings of Iceland and eurozone members.â http://www.bloomberg.com/news/2011-07-06/debt-raters-miss-iceland-rebound.html The only discrepancy is the existence of ratings agencies.