|Icesave Doesn’t Impact Moody’s Rating for Iceland|
|Written by Iceland Review|
|Wednesday, 27 April 2011 13:30|
The rating agency Moody’s affirmed the local and foreign currency bond ratings for the Icelandic state at Baa3 on April 20 in spite of having announced that the rejection of the new Icesave legislation in the referendum on April 9 would likely result in a negative rating action.
“Despite the rejection of the revised agreement to resolve the dispute over the Icesave offshore bank deposit scheme, the British and Dutch deposit insurance funds are expected to receive initial payments from the Landsbanki estate soon for the costs they incurred in covering their citizens’ Icesave deposits,” Moody’s statement reads.
“In addition, the Landsbanki estate now expects to be able to make significantly higher payments to priority claimants as asset recoveries have been much higher than expected earlier. The outstanding Icesave obligation and potential liability to the government might therefore be reduced significantly in the coming months regardless of the referendum outcome,” it continues.
|Last Updated on Tuesday, 13 December 2011 23:36|