Thursday 5 December 2019

Ireland gets upgrade in S&P sovereign credit ratings

NTMA chief executive Conor O'Kelly. Photo: Frank McGrath
NTMA chief executive Conor O'Kelly. Photo: Frank McGrath
Samantha McCaughren

Samantha McCaughren

Ireland's sovereign credit rating has been restored to its pre-bailout level for the first time by ratings agency Standard & Poor's (S&P), bringing it to AA- (from A+) with a stable outlook.

This is Ireland's first long-term rating upgrade from S&P since June 2015 and returns Ireland to the AA rating category for the first time since entering the Troika programme in late 2010. The upgrade is a positive development for the Government.

Re-entering the AA category puts Ireland closer to core eurozone countries including France (AA), Belgium (AA) and Austria (AA+). Other countries in the AA category include the United States (AA+) and the United Kingdom (AA).

S&P also upgraded Ireland's short-term rating from A-1 to A-1+, which is S&P's highest short-term rating.

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NTMA Chief Executive Conor O'Kelly said: "Today's upgrade continues the upward trend in Ireland's sovereign ratings that has been evident for some time."

In making its decision, S&P referenced Ireland's strong fiscal outcomes and vigorous economic growth.

"Our new AA- rating will increase the pool of potential buyers of Irish Government bonds, which will be positive for demand and further enhance our ability to diversify our investor base," said O'Kelly.

Sunday Indo Business

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