Press release
Minister McGrath welcomes Moody’s upgrade of Ireland’s Sovereign Credit Rating to Aa3
Published on
Last updated on
Published on
Last updated on
The Minister for Finance Michael McGrath has welcomed the upgrade of Ireland’s long-term sovereign credit rating by Moody’s to Aa3 from A1with a stable outlook.
The revised rating returns Ireland to Moody’s AA category for the first time since 2010. Ireland is now rated in the AA category by all major ratings agencies.
The upgrade puts Ireland’s rating on a par with core Eurozone countries including France (Aa2), Belgium (Aa3) and Austria (Aa1). Other issuers in the Aa3 category include the United Kingdom and Hong Kong.
The Minister for Finance Michael McGrath said:
“The announcement by Moody’s of an upgrade to Ireland’s sovereign credit rating is a very positive development, reflecting the ongoing strength of the Irish economy and the public finances. It underlines the importance of Ireland’s prudent fiscal policies and the adoption of a robust fiscal framework.
"Moody’s expectation that the economy will continue to grow at a solid pace in the near to medium term, albeit slowing from the exceptional rates of growth in 2021 and 2022, is particularly welcome.
"As a country, we are making progress across a number of fronts, building up our National Reserve Fund, reducing our overall National Debt, and investing in capital infrastructure to underpin our long term well-being and prosperity.
"In their report, Moody’s note Ireland’s corporation tax receipts are dependent on a relatively small number of firms and I am taking action to address this. I will shortly bring forward proposals to put the National Reserve Fund on a sound long term footing using the windfall corporation tax receipts we have been experiencing.
"I also welcome Moody’s noting of prudent bank lending practices, and banking regulation and supervision in Ireland which reduces risk to our sovereign credit rating. Earlier this week, I signed an order to commence a large part of the Central Bank (Individual Accountability Framework) Act 2023 which is part of the extensive work we have been undertaking to ensure we have a robust and resilient banking sector."
1. The AA- rating is Moody’s fourth-highest long-term rating (after Aaa, Aa1 and Aa2).
2. Moody’s previously uprated Ireland to A1 (positive outlook) in May 2022. Prior to that Ireland was at A2 rating from September 2017.