Moody’s Upgrades Ireland’s Rating Outlook to Positive

• Moody’s has upgraded Ireland’s rating outlook from stable to positive while reaffirming the country’s Aa3 rating.
• The Aa3 rating indicates that Ireland’s obligations are considered “high quality” with “very low” credit risk.
• The upgrade reflects Ireland’s strong growth potential, robust institutional framework, and demonstrated resilience to external shocks.
• Moody’s also predicts a reduction in Ireland’s gross debt burden and a slight improvement in debt affordability.
• Finance Minister Jack Chambers welcomed the upgrade, noting it reflects the resilience of Ireland’s economy and the government’s commitment to a balanced fiscal policy.

Dublin, August 19 (FFN) – Moody’s rating agency has improved the outlook for Ireland’s credit rating from stable to positive at the end of last week, while reaffirming the country’s Aa3 rating, according to a report from RTÉ.

The upgrade means that Ireland will maintain its rating, which is the fourth-highest level within Moody’s rating scale, three notches below the top Aaa rating. An Aa3 rating signifies that Ireland’s obligations are regarded as “high quality” with “very low” credit risk.

In its rationale for the improved outlook, Moody’s highlighted Ireland’s strong growth potential, a robust institutional framework, and proven resilience to external shocks. The rating agency also forecasted a decline in Ireland’s gross debt burden and a slight enhancement in debt affordability.

Moody’s assigned Ireland the Aa3 rating in April 2023, citing improvements in fiscal and debt parameters.

Finance Minister Jack Chambers welcomed the upgrade, stating that it “reflects the resilience of the Irish economy and the government’s commitment to a balanced and sustainable approach to fiscal policy while continuing to invest in public services and support households.”

However, he cautioned that the country’s public finances are still supported by the volatile windfall tax revenues from corporations, and these unexpected revenues should not be used to finance permanent expenditures.

“For this reason, the establishment of two new long-term savings instruments – the Ireland Future Fund and the Infrastructure, Climate, and Nature Fund – is critical and reflects the importance the government places on ensuring that Ireland is prepared for the challenges ahead,” he added.

Ireland’s Credit Rating Overview