The latest credit rating agency report released today says there is no clear trend in the country’s overall credit rating.
However, the latest rating outlook indicates that credit conditions are improving and credit quality is improving.
A credit rating outlook from the ratings agency, RTE’s Vin, says that credit markets are improving in Ireland, and this has prompted the country to invest more in its financial infrastructure, including the credit ratings of its banks.
However, the agency warns that credit market conditions remain “somewhat challenging”.
It says that the country will face some challenges as it continues to improve its overall credit profile, with the ratings body noting that the economy continues to remain weak.
It notes that while the government has been able to address the underlying economic problems that underpin credit ratings, the outlook does not see an improvement in the outlook for Irish institutions in the longer term.
However the rating agency points out that there are some signs of improvement.
“We expect that credit fundamentals and the strength of the Irish economy are improving, reflecting improved economic performance over the past few years, as well as the significant increases in credit ratings.
We see that Ireland is in a position to address its credit profile in the medium to long term.
In this regard, we expect that the Irish Government will continue to provide additional stimulus, including through the issuance of new government bonds, by using its existing credit line and the availability of new credit.”RTE also notes that there is still a wide gap between the UK and Ireland in terms of credit ratings as the latter has more than two times the creditworthiness of the former.
However it says that there have been some signs that Ireland’s credit ratings are improving.
“The rating outlook for Ireland has improved, with a forecast of a further credit rating increase in the coming months.
While credit conditions remain challenging, we believe that the overall rating outlook will improve in the near term.”