Moody’s lifts Ireland’s sovereign rating to ‘Aa2’ on fiscal resilience
Updated / Monday, 24 Aug 2026 12:42
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The National Treasury Management Agency has welcomed credit ratings agency Moody’s upgrade of Ireland’s long-term sovereign credit rating.
This marks the first upgrade of Ireland’s rating from Moody’s since April 2023 and is the first time that Moody’s has rated Ireland at Aa2 since 2010.
Moody’s on Friday upgraded Ireland’s sovereign credit rating to “Aa2” from “Aa3” and reiterated its positive outlook, saying it expects improvements in the country’s economic and fiscal strength to continue.
Aa2 is Moody’s third-highest rating, after AAA and Aa1.
The ratings agency said its assessment was supported by Ireland’s strong institutional framework, effective policymaking and resilience to recent changes in US trade and tax policies.
Foreign direct investment in the country was delivering stronger and more lasting economic and fiscal benefits than previously assessed, it added.
Moody’s said underlying growth remained strong, with public investment under Ireland’s National Development Plan expected to help ease constraints in areas such as housing and essential infrastructure.
Ireland had reduced its debt burden more rapidly in recent years than Moody’s had expected, the ratings agency said, adding that it expects the trend to continue, supported by resilient government revenues and prudent fiscal management.
However, the country remains vulnerable to external shocks, especially changes in US trade, tax and industrial policies, the ratings agency warned, but added that the Government’s high policy effectiveness should help cushion their impact.
Dave McEvoy, Director of Funding and Debt Management at the NTMA, said the upgrade from Moody’s returns Ireland to the Aa2 rating for the first time since 2010.
“This upgrade is underpinned by a range of factors, including further improvements in Ireland;s debt metrics. It also reflects positive international investor sentiment, as evidenced by the continued strong demand for Ireland’s debt,” Mr McEvoy said.
“With €9.5 billion of benchmark bonds issued so far this year, from a total funding range of €10 to €14 billion, we are well positioned heading into the final months of the year,” he added.
