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NTMA welcomes Moody’s upgrade of Ireland’s sovereign credit rating

14 May 2016 – The National Treasury Management Agency (NTMA) welcomes today’s upgrade of Ireland’s long-term sovereign credit rating by Moody’s to A3 from Baa1, placing Ireland in the A ratings category with all major credit rating agencies. Moody’s also maintained its “positive” outlook on Ireland’s rating.

The report from Moody’s noted the strong growth in Ireland’s real and nominal GDP and a reduction in general government debt as key drivers of the decision to lift Ireland’s rating into the A category for the first time since Moody’s five-notch downgrade in December 2010.

NTMA Director of Funding and Debt Management Frank O’Connor said:

“Moody’s upgrade represents further affirmation of Ireland’s fiscal and economic recovery. While the rating is still two notches below Ireland’s highest rating it is encouraging that the “positive” outlook was maintained, allowing potential for more upgrades. Moody’s, echoing the sentiment of investors we have visited, noted the importance of fiscal developments to Ireland’s future credit rating.

An eventual uplift to the A category had already been discounted by many investors we met on our international roadshows. However, the formal upgrade today will assist our ongoing efforts to broaden the market for Irish sovereign debt, particularly to those who are obliged to use the lowest rating across the major rating agencies.”