Nama's credit rating lifted by Standard & Poor's
Nama’s credit rating has been lifted to A+ by Standard & Poor's, following last Friday’s upgrade of the State’s sovereign credit ratings.
The rating agency said that in practice Nama’s debts would be honoured by the State in any crisis situation, and therefore should be ranked equally.
“In our opinion, there is an almost certain likelihood of the Irish sovereign providing extraordinary support to the National Asset Management Agency (NAMA) in the event of financial distress, based on its critical policy role in restoring stability to the Irish banking system, and integral link with the Irish government.”
NAMA's senior borrowings are also issued under the Irish government's guarantee, which we view as being unconditional, irrevocable, and timely.
We are therefore raising our long-term issuer credit ratings on NAMA to 'A+' from 'A',” S&P said.
The agency said yesterday that it expected Ireland's economy to grow by 3.6pc on average between 2015 and 2018, one of the fastest in the Eurozone.
Friday’s was the third upgrade by the agency in the past year. The two other big ratings giants, Moody's and Fitch, have Ireland at Baa1 and A- respectively.
S&P said it has kept its outlook for Ireland at stable. But it warned that if the Government embarked on an "overly expansionary fiscal policy", it could be at risk of a downgrade.
"The upgrade reflects our view of Ireland's improved fiscal performance, higher state asset sales, and robust economic performance, which have combined to lead to a quicker decline in net general government debt than we had previously forecast," the agency said.