The National Treasury Management Agency has said it is disappointed that the ratings agency Moody's did not see fit to upgrade Ireland's credit rating from its current junk status to investment grade.

The NTMA said it noted Moody's decision to change its outlook on Ireland's sovereign debt rating to stable from negative.

Moody's continues to apply a junk rating to Irish Government bonds.

But the change in outlook is the first sign that the agency may consider a ratings upgrade.

In a note issued last night, Moody's said the key drivers of the outlook change were the Government’s progress in restoring solvency to its public finances and the country's reduced risk of losing access to financial markets because of an improvement in its liquidity.