Moody's Investors Service, one of the world's three major rating agencies, has upgraded Ireland's sovereign debt rating by two notches to "Baa1" in its latest report, with a "stable" outlook.
In the report, Moody's noted that Ireland's economic growth has picked up and the government's fiscal consolidation process has accelerated, both of which will lead to a significant improvement in the country's medium-term public debt outlook.
Moody's also believes that compared to other Eurozone countries with similar profiles, Ireland has a better credit position, stating that "Ireland's credit profile is recovering more rapidly from the Eurozone debt crisis, which is a result of the country's economic vitality and growth prospects."
However, Moody's also pointed out that Ireland's high level of public debt, fiscal deficit, and risks within the banking sector, including a large volume of non-performing loans, remain negative factors for the rating.
