International ratings agency Morningstar DBRS has upgraded Ireland’s long-term sovereign credit rating to AA with a stable trend.
This rating upgrade, from AA (low), is the first upgrade from Morningstar DBRS since January 2022.
Morningstar DBRS also upgraded both Ireland’s short-term and Euro-Commercial Paper (ECP) Programme ratings to R-1 (high).
In making its decision, Morningstar DBRS cited Ireland’s strong fiscal performance as well as the establishment of two long-term saving funds – the Future Ireland Fund and Infrastructure, Climate and Nature Fund.
Morningstar DBRS also highlighted the expected continued improvement in Ireland’s public debt metrics.
The Minister for Finance, Jack Chambers welcomed the upgrade and said it reflects an expectation that Ireland’s strong fiscal position will persist over the medium-term and that the establishment of the two new long-term savings funds (the Future Ireland Fund and the Infrastructure, Climate and Nature Fund) will help manage the risks around windfall tax revenues.
Mr Chambers said: “This is a recognition of the fundamental strength of our economy.
“However, we know that the very positive headline figures mask underlying risks that we must be cognisant of. The fiscal position remains heavily exposed to volatile ‘windfall’ corporate tax revenues paid by just a small number of highly profitable firms which is why the establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund is such a positive and important development.”
The upgrade was also welcomed by Dave McEvoy of the National Treasury Management Agency (NTMA) who said it is “consistent with international investor sentiment”.
“Today’s upgrade is underpinned by a range of factors including the improvement in Ireland’s fiscal position, as well as a favourable debt structure.”
Sourse: breakingnews.ie
