S&P could cut Iceland to junk

ICELAND’S credit ratings could be downgraded to junk debt status after its voters rejected a deal to provide a state guarantee for repaying Britain and the Netherlands for losses from the Landsbanki banking crash in 2008, Standard & Poor’s said yesterday.

S&P said it put Iceland on its list for a possible downgrade due to higher economic risks in the wake of the no vote.

The agency has a BBB-/A-3 foreign currency rating, meaning it is just one notch above the so-called junk rating category.