OVERVIEW

  • We have revised our 2014-2016 average real GDP growth projections for Ireland upward to 2.7% from 2.0%.
  • This reflects our expectation of a continued strong external performance and a sustained recovery of the domestic economy.
  • We are therefore raising our long-term sovereign credit ratings on Ireland to ‘A-’ from ‘BBB+’. We are affirming the short-term ratings at ‘A-2′.
  • The outlook is positive, reflecting our view of at least a one-in-three possibility that we could raise our ratings on Ireland again in the next two years.

RATING ACTION

On June 6, 2014, Standard & Poor’s Ratings Services raised its long-term foreign and local currency sovereign credit ratings on the Republic of Ireland to ‘A-’ from ‘BBB+’. At the same time, we affirmed the short-term ratings at ‘A-2′. The outlook is positive.

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OVERVIEW

  • We are affirming our ‘BBB/A-2′ long- and short-term sovereign credit ratings on the Republic of Italy.
  • The affirmation reflects our view of Italy’s wealthy and diversified economy, as well as our expectation that the government will make some progress on important structural and fiscal reforms.
  • The outlook on the long-term rating remains negative, reflecting our view of risks to the public sector balance sheet from weak real and nominal growth prospects.

RATING ACTION

On June 6, 2014, Standard & Poor’s Ratings Services affirmed its unsolicited ‘BBB’ long-term and ‘A-2′ short-term sovereign credit ratings on the Republic of Italy. The outlook on the long-term rating remains negative.

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