Moody’s upgrade welcomed

The National Treasury Management Agency has stated that it welcomed ‘Moody’s decision to raise Ireland’s sovereign credit rating by two notches to Baa1 (from Baa3) with a stable outlook.

NTMA Chief Executive John Corrigan said: “Moody’s upgrade means that all of the three main rating agencies now have Ireland rated at BBB+ (or equivalent), which clearly ranks Ireland as an investment-grade credit and reflects the confidence in Ireland shared by investors generally.

It is also positive for the remainder of the NTMA’s funding programme in 2014 which is already more than 80 per cent achieved. I am pleased to note that one of the main drivers for today’s upgrade was the sharp reduction in Government contingent liabilities due in part to the accelerated asset sales by NAMA.”

Finance Minister Michael Noonan stated:

“This upgrade by two notches highlights the significant progress that has been made in restoring investor confidence in Ireland, fixing the public finances and returning the economy to a path of sustainable growth and job creation. It is particularly welcome that Moody’s have singled out the success of recent NAMA asset sales and the IBRC liquidation as a key factor in their decision. This Government will continue to take actions that improve our fiscal position, supports investment and creates jobs. The NTMA is doing an excellent job in securing stable and low cost funding for the State and this upgrade will further support their funding plans”