Credit ratings agency DBRS Morningstar has upgraded its ratings for Ireland's sovereign debt.

Its rating for Ireland has been raised to AA (low) with "a stable outlook".

The upgrade was welcomed by the National Treasury Management Agency in a statement tonight.

DBRS said Ireland’s strong growth and favourable financing conditions should allow the debt ratios restore their downward trend in the years ahead.

It also referred to Ireland’s "macroeconomic resilience" in the face of external events.

In welcoming the move, the NTMA’s Director of Funding and Debt Management, Frank O’Connor, said: "This upgrade by DBRS is welcome news and reflects market sentiment and what we are hearing from our engagement with international investors."

Earlier this week, the NTMA successfully raised €3.5 billion in a syndicated ten-year bond deal.