Ireland Upgraded by Moody's Again After Bailout Exit

Ireland Upgraded by Moody's Again After Bailout Exit

On Friday, Moody's Investors Service upgraded the credit ratings of Ireland giving an extra vote of confidence to the first country in the euro zone to complete an EU/IMF bailout last year. Moody's raised its rating of Ireland by two notches from BAA3 to BAA1 and with a stable outlook. The rating agency said a fresh pick-up in the momentum of growth would pace up the fiscal consolidation and reduce government debt sooner.

In a statement the credit agency said, "Ireland's credit profile is recovering more quickly from the euro area debt crisis as a result of its economy's dynamism and growth prospects." Moody's had upgraded Ireland to investment grade in the month of January, giving the government significant boost one month after it had completed the European Union/International Monetary Fund bailout.

The head of the country's debt agency, John Corrigan said, "Moody's upgrade means that all of the three main rating agencies now have Ireland rated at BBB+, or equivalent, which clearly ranks Ireland as an investment-grade credit and reflects the confidence in Ireland shared by investors generally." Ireland is now funded into 2015 and the National Treasury Management Agency (NTMA) has already sold 80 percent or more of its programme for the current year, by taking benefit of the optimistic investor sentiment as it recommenced normal bond auctions.
 

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