Standard & Poor’s has upgraded its credit outlook for the Republic of Ireland from “stable” to “positive”, arguing that the country’s debts are falling faster than expected.
“Ireland’s economic recovery is under way”, it said.
Ireland lost its AAA credit rating in 2009 following the global financial crisis and it now stands at BBB-plus
But S&P said there was a one-in-three chance it would raise the country’s credit rating in the next two years.
“The outlook revision reflects our view that Ireland’s general government debt burden is likely to decline more rapidly, as a percentage of GDP, than we had previously expected,” S&P said in a statement.
It expects that national debt will fall from 122% of gross domestic product (GDP) in 2013 to 112% by 2016.
Moody’s remains the only credit agency still rating Ireland’s debt as “junk”.