S&P affirms positive outlook for Ireland

Agency says ‘more than one-in-three chance’ it could raise long-term ratings on Ireland

Standard & Poor’s this morning reaffirmed Ireland’s credit rating and said the outlook for the country remains positive. Photo: Bloomberg

Standard & Poor’s this morning reaffirmed Ireland’s credit rating and said the outlook for the country remains positive. Photo: Bloomberg

Fri, Dec 20, 2013, 08:01

Ratings agency Standard & Poor’s this morning reaffirmed Ireland’s long term sovereign rating, saying the outlook for the country remains positive.

The ratings agency expects the government to reduce its debt burden through budgetary consolidation and asset sales, as the domestic economy improves. That will allow Ireland to maintain access to capital markets.

S&P said there was a more than one-in-three probability that it could raise its long-term ratings on Ireland in the next 18 months.

The ratings agency affirmed the UK’s long term sovereign rating at AAA/A-1+, saying the outlook was still negative.

It said the UK government continued to benefit from its “exceptional monetary flexibility”, while the economy was recovering on the back of private consumption and residential investment.

The outlook, however, remained negative, reflecting risks to the sustainability of that growth, S&P said

The agency also affirmed the AAA/A-1+ long- and short-term issuer credit ratings on the Bank of England.

Reuters