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Moody's upgraded Ireland to investment grade in January, handing the government a major boost a month after it completed the European Union/International Monetary Fund bailout.
With Irish debt already rallying, that upgrade further opened it up to investors prohibited from buying junk-rated paper. Ireland's bailout exit has been relatively smooth, having made a strong return to bond markets and with an economy set to grow about two per cent this year.
At the height of the euro zone crisis in July 2011, Moody's cut Ireland's rating to Ba1, one notch below former financial market pariah Colombia, and that prohibited large, mainly Asian-based ratings-sensitive funds from touching Irish debt.
Credit agency Moody's Investors Service upgraded Ireland's credit rating adding a further vote of confidence to the first euro zone country to complete an EU/IMF bailout last year.
"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," the credit agency said in a statement.
"However, Ireland's credit profile and rating remain constrained by the country's high public debt level, still-sizeable fiscal deficits and significant banking sector risks, including a high stock of non-performing loans."
Moody's raised Ireland's rating by two notches to Baa1 from Baa3 and with a stable outlook, saying a recent pick-up in growth momentum would speed up fiscal consolidation and cut government debt faster.