S&P raises Ireland's outlook to stable

  • Rating agency Standard & Poor's has raised Ireland's sovereign outlook to stable from negative on the back of increased expectations for lower debt servicing costs and refinancing risk.

    The agency currently rates Ireland BBB-plus.

    The move "reflects our expectation that the exchange of promissory notes for longer-term government bonds significantly reduces the Irish government's debt-servicing costs and refinancing risk, and supports medium-term fiscal consolidation," S&P said in a statement on Monday.

    "By improving the government's debt-maturity profile, the transaction also increases the prospects of Ireland leaving the EU/IMF bailout program as planned at the end of 2013,” the statement continued.

    Rival agency Moody's rates the country Ba1 with a negative outlook, which is below investment grade. Fitch rates Ireland BBB-plus with a stable outlook.

    Explore the locations of Ireland through Ireland Map