Fitch Raises Irish Debt Rating, Citing Healthier Banks

The Fitch ratings agency raised Ireland's sovereign debt rating Friday, pointing to the increasing strength of the local banking sector

Washington, (UrduPoint / Pakistan Point News - 16th Dec, 2017 ) :The Fitch ratings agency raised Ireland's sovereign debt rating Friday, pointing to the increasing strength of the local banking sector.

The move marked the republic's continuing recovery from the eurozone debt crisis. Fitch raised Ireland's long-term sovereign debt rating to A+ from A, with a stable outlook. Among lenders, the share of non-performing loans fell below 12 percent in the second quarter of this year, down from more than 25 percent four years ago, the agency said in a statement.

And in major Irish banks such as Bank of Ireland Group, tier-one capital has risen to 25.3 percent in the second quarter, up 1.

6 percentage points in a year. Meanwhile, the country's debt-to-income ratio is falling, even though it remains the fourth-highest in the European Union, according to Fitch.

Ireland has a "wealthy, flexible economy," with strong institutions and among the highest per capita incomes of any country in the A category, the agency said. But uncertainty surrounding EU-British negotiations and the future of trade relations with Britain remains a risk to growth prospects, according to Fitch.

British authorities have recently pledged to minimize the reemergence of trade barriers with the Republic of Ireland as a result of Britain's impending exit from the European Union.