Minister for Finance Michael Noonan has said the decision by ratings agency Moody's to upgrade Ireland's long-term sovereign rating shows the country is progressing in the correct direction.
Moody's has upgraded Ireland to a low credit risk A3 rating from Baa1 with a positive outlook.
Mr Noonan said the fact that Ireland's economic growth rate is the highest in the EU and that the public finances have been placed on a sustainable footing is a clear factor in the decision.
The decision matches those by the other major ratings agencies.
The Department of Finance said the continuing and material improvement in Ireland's economic growth is the driving force behind the upgrade.
The National Treasury Management Agency also welcomed the upgrade saying it represents further affirmation of Ireland's fiscal and economic recovery.
NTMA Director of Funding and Debt Management Frank O’Connor said while the rating is still two notches below Ireland's highest rating, it is encouraging that the positive outlook was maintained.
