Ireland’s rating was raised for the second time in less than six months by Moody’s Investors Service as the economy stabilizes and concern that the euro-region may be under threat eases. Moody’s raised its ranking two levels to Baa1 from Baa3, the ratings company said May 16 in a statement. Six of nine analysts and economists surveyed by Bloomberg News predicted an upgrade. The outlook is stable, Moody’s said. “The recent pick-up in Ireland’s growth momentum will speed up ongoing fiscal consolidation and put the government’s debt metrics on a steeper downward path than previously anticipated,” Moody’s said. Moody’s is upgrading its view as Irish employment grows, the government deficit narrows and the wider crisis which threatened the euro-region’s future eases. The ratings company this month raised Portugal’s rating, and in January, restored Ireland to investment grade. The yield on Ireland’s 10-year benchmark government bond has fallen more than 70 basis points over the last 12 months to 2.68%.
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