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ECONOMY

IRELAND could regain its 'A' credit rating as early as next year from two of the three main agencies.

Government bonds are already trading at levels that indicate further ratings upgrades from Standard & Poor's and Fitch are being factored in by investors, according to the head of strategy at Dutch bank ING.

Yesterday the yield, or implied borrowing cost, on 10-year government bonds fell to 3.26pc – down from 3.5pc just two weeks ago.

"A return to 'single A' ratings in 2015 is now doable for Ireland," ING's Padhraic Garvey told the Irish Independent.

The combination of a primary budget surplus next year, which ING expects, with reduction of the budget deficit to just 3pc would be enough to drive the further upgrades, he said.


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