Positive Outlook: S&P hikes Ireland’s credit rating

DUBLIN: Standard & Poor’s has revised Ireland’s sovereign credit rating to A- with a positive outlook from its previous BBB+ assessment, citing the Eurozone member’s improved domestic prospects. In contrast, the ratings agency held Italy’s credit rating at BBB, which is two notches above junk level, and maintained its negative outlook. “The (Irish) upgrade reflects our view of the brightening prospects for Ireland’s domestic economy, which we expect to underpin further improvements in the government’s financial profile, capital markets access, and financial system asset quality,” S&P said in a statement. The agency also ramped up its 2014-2016 average gross domestic product growth projections for Ireland to 2.7% from 2.0% previously. “We believe the domestic recovery is broadening and has gathered pace in the first quarter of 2014,” S&P added. “Full-time employment grew by 2.3% during March 2013 quarter to March 2014, with the unemployment rate estimated to have declined to 11.8% in May 2014, the lowest since April 2009.”

Published in The Express Tribune, June 8^th, 2014.

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