S&P Upgrades Ireland’s Credit Outlook to Positive

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”.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza