ONE OF THE world’s largest credit rating agencies has upgraded its estimation of Ireland’s rating from AA to AA+, putting the country within one notch of a triple-A rating for the first time since 2009. 

S&P yesterday said that it has restored its ratings outlook for Ireland to stable, from ‘positive’. It’s the highest rating that Ireland has with any of the major credit agencies. 

Tánaiste and Minister for Finance Simon Harris welcomed the news, saying that it is a reflection of the “fundamental strength of our economy” and of Government management “of our public finances”. 

“This means that we are approaching a period of unprecedented global uncertainty from a position of considerable strength,” Harris added. 

The Tánaiste further said that the ratings upgrade emphasises the need for Government to conduct overall budgetary policy in a manner that is “balanced and sustainable over the medium-term”. 

Harris acknowledged that the need for budgeting has to be balanced with responding to “the challenges of today”. 

A country’s credit rating signals how trustworthy it is when it borrows money. A high rating boosts investors’ trust in the country. 

The upgraded rating from S&P relates to Ireland’s long-term local and foreign currency sovereign rating – the country’s short-term rating is at the highest level of A-1+. 

S&P noted that despite rising “global trade protectionism”, Ireland’s economy has expanded by close to 5% on average for 5 consecutive years. 

However, the firm also noted that Ireland’s economy still remains sensitive to “external shocks” due to its “extreme oppenness”, with exports making up 144% of GDP. 

S&P said that despite that risk, in its view, Ireland’s economic “diversity” and “sound policy settings” will help the Government to shield households and companies from a slowdown in global growth, or any potential withdrawal of foreign direct investment. 

Commenting on the upgrade, the National Treasury Management Agency said that it reflects positive international investor sentiment. 

Dave McEvoy, the director of funding and debt management at the agency, said that the decision marks a “strong start” to its 2026 funding programme.