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London, 01 August 2014

Moody’s Investors Service has today upgraded Greece’s government bond rating by two notches to Caa1 from Caa3. The outlook on the rating is stable. Greece’s short-term debt rating is unaffected and remains Not Prime (NP).

The rating action was triggered by the following key factors:

  • The significant improvement in Greece’s fiscal position over the past year and the rating agency’s view that the government remains committed to fiscal consolidation underpin Moody’s forecast of a gradual decline in the public debt to GDP ratio, which Moody’s expects to peak this year and then start to fall from 2015.
  • The improvement in Greece’s economic outlook, based on both a cyclical recovery and the progress made in implementing structural reforms and rebalancing the economy, further supports the downward trajectory of the public debt ratio.
  • The government’s reduced interest burden and lengthened maturities of the debt, which is predominantly owed to official creditors, adds to fiscal flexibility and reduces refinancing risks.

Concurrently, Moody’s has raised the local and foreign-currency country ceilings for long-term debt and deposits to Ba3 from B3. The foreign-currency country ceilings for short-term debt and deposits remains Not Prime (NP).

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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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New York, May 16, 2014

Moody’s Investors Service has today upgraded Ireland’s rating by two notches to Baa1 from Baa3. At Baa1, the outlook is stable. Concurrently, the short-term rating has been upgraded to P-2 from P-3.

The key drivers of the upgrade of Ireland’s rating are the following:

  • A step change in future debt levels. Moody’s expects that 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, leading to a significantly improved outlook for Ireland’s medium-term public debt trajectory.
  • Very sharp reduction in off-balance sheet exposures. The recovery in the Irish property market has resulted in a considerable recent reduction in government contingent liabilities, due both to the accelerated asset sales of Ireland’s National Asset Management Agency (NAMA) and to the disposal of the Irish Bank Resolution Corporation (IBRC) portfolio.
  • Improved credit position relative to peers. Compared to other Baa-rated euro area sovereigns, including Italy (Baa2 stable) and Spain (Baa2 positive), Ireland’s credit profile is recovering more quickly from the euro area debt crisis as a result of its economy’s dynamism and growth prospects. This assessment informs the two-notch upgrade, repositioning the rating at the top of Ireland’s scorecard-implied rating range.

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London, 09 May 2014

Moody’s Investors Service has today upgraded Portugal’s government bond rating to Ba2 from Ba3. In addition, the rating agency placed the Ba2 rating on review for possible further upgrade.

The rating action was triggered by the following key factors:

  • Portugal’s fiscal situation has improved more rapidly than initially targeted and the public debt ratio will start declining this year, albeit from a very high level. The budget deficit was reduced a full percentage point of GDP more than envisaged last year, indicating the government’s strong commitment to fiscal consolidation.
  • The country will conclude its three-year EU/IMF support programme in the near future, without the need for a precautionary credit line from the European Stability Mechanism (ESM). Portugal has regained access to the public debt markets and in addition the government has built up sizeable cash buffers.
  • Portugal’s economic recovery is gaining momentum, with signs of broadening beyond exports, which continue to perform strongly. Moody’s believes that economic growth will be sustained over the medium-term because the Portuguese authorities have implemented a wide range of structural reforms.

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London 25 April 2014

Fitch Ratings has upgraded Spain’s Long-term foreign and local currency Issuer Default Ratings (IDRs) to ‘BBB+’ from ‘BBB’ The issue ratings on Spain’s senior unsecured foreign and local currency bonds have also been upgraded to ‘BBB+’ from ‘BBB’. The Outlooks on the Long-term IDRs are Stable. The Country Ceiling was raised to ‘AA+’ from ‘AA’ and the Short-term foreign currency IDR affirmed at ‘F2’.

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New York, January 17, 2014

Moody’s Investors Service has today upgraded Ireland’s government debt ratings to Baa3/P-3 from Ba1/NP. The outlook on the ratings is now positive.

The two main drivers for the upgrade are:

  • The growth potential of the Irish economy, which together with ongoing fiscal consolidation is expected to bring government debt ratios down from their recent peak;
  • The Irish government’s exit from its EU/IMF support programme on schedule, with improved solvency and restored market access.

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