After talks aimed at resolving a depositor dispute with Britain and the Netherlands stalled, the credit rating of Iceland outlook was lowered at Moody’s Investors Services, putting the possible international bailout into question.
The rating agency cut its outlook on Iceland’s Baa3 rating, one level above junk, to negative from stable. It is also announced by Moody’s that the outlooks on the Baa2 foreign currency bond ceiling and Baa3 foreign currency deposit ceiling were also changed to negative from stable.