- Ratings agency Moody's
Ireland's economy is on the mend after a number of recessions in recent years. The economy has posted a 0.4% growth in the second quarter, and accelerated to 1.5% in the third quarter, with the reported gain being almost double what markets had been expecting. The latest data signals that Irish economy may be over the worst and will start building up steam soon.
Supporting these suggestions Moody's credit agency upgraded Ireland's sovereign debt rating, pulling the rating out of junk territory. It has been bumped from the Ba1 level, which had been since 2011, to Baa3, with a positive outlook for the economy. The upward revision means all three of the main rating agencies now rank Irish economy as investment grade. Soon after the report Irish government securities advanced, with 10-year yields falling the most since September 2011.
However, the country has gone through a painful path before gaining recognition from all rating companies. During the last two years Moody's downgraded Ireland's credit rating five times, and assigned junk status in July 2011. At the time being, with Irish debt office selling 10-year bonds at the lowest rate for more than 13 years and improved investors' confidence, the economy is expected to continue gaining momentum in the foreseeable future.
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