Ireland’s credit rating upgraded by DBRS on economic ‘resilience’

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DBRS Morningstar has upgraded its rating on the State’s creditworthiness by one level to AA (low) in view of the economy’s “enhanced macroeconomic resiliency” during the Covid-19 crisis. The new rating is three rungs below the agency’s top AAA position.

“Ireland’s economic progress was on a path of high growth and diminishing vulnerabilities well before the onset of the pandemic,” the debt ratings agency said on Friday evening, noting that gross domestic product expanded by 7.6 per cent a year between 2017 and 2019.

DBRS says the “stable” trend it has on the new rating “reflects our view that Ireland is well positioned to balance adverse credit implications stemming from the pandemic, global tax reform and Brexit against the favourable growth outlook”.

The upgrade comes a day after the National Treasury Management Agency (NTMA) raised €3.5 billion selling 10-year bonds, completing more than a third of its minimum full-year funding target less than two weeks into 2022.

The bonds, sold through a syndicate of banks and securities firms, were priced to carry an interest rate, or coupon, of 0.387 per cent.

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