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Ireland credit rating looks secure even with risk of hard Brexit - Moody’s

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Ireland's credit rating looks secure thanks to the economy’s “very robust” fundamentals, credit ratings agency Moody’s believes - even with the risk of a "hard Brexit".

The unknowns from Brexit have risen, with Prime Minister Theresa May looking set for a heavy defeat in a vote on her proposals to leave the European Union later on Tuesday.

“Despite the enhanced risks, we see Ireland in a pretty strong and stable situation,” sovereign risk analyst Sarah Carlson told a presentation in Dublin.

Carlson said that Ireland did need to build up budget reserves to offset the risks from being a small open economy.

Moody’s rates Ireland A2 and believes that a “no deal” Brexit would knock 4pc points off UK growth over the longer term, although its central case is not for a cliff edge exit.

It did not model the impact of a no-deal exit on Ireland’s growth.

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