S&P Upgrades Ireland’s Credit Rating to AA+ – First Time Since 2009

Ireland’s Sovereign Debt Rating Reaches Highest Level in Over a Decade

S&P Global Ratings upgraded Ireland’s long-term sovereign credit rating to AA+ on March 20, 2026, bringing the country within one notch of a top-tier AAA rating for the first time since early 2009. The move reflects a sustained period of strong economic performance and improved debt metrics, according to the agency.

The upgrade, from AA, also restores Ireland’s ratings outlook to stable. S&P affirmed Ireland’s short-term rating at A-1+, its highest possible level. This marks the first upgrade from S&P since May 2023, and positions Ireland with its highest rating from any of the major credit rating agencies.

The National Treasury Management Agency (NTMA) welcomed the decision. “Today’s S&P rating upgrade to AA+ is another positive development for Ireland,” said Dave McEvoy, Director of Funding and Debt Management at the NTMA. “It reflects positive international investor sentiment and further improvements in Ireland’s debt metrics, with Irish bonds now trading close to core European sovereign issuers.”

S&P cited several key factors driving the upgrade, including Ireland’s robust economic and budgetary performance, strengthening fiscal buffers, a continuing decline in net debt, and a favorable structure of government debt characterized by long average maturity and a high proportion of fixed-rate borrowing. This debt structure provides a degree of protection against rising interest rates.

The upgrade signals a remarkable turnaround for Ireland, which was severely impacted by the global financial crisis and subsequent sovereign debt crisis. During the worst of the downturn, S&P downgraded Ireland to as low as BBB+, seven levels below AAA. The Republic even faced a “junk” status downgrade from Moody’s in 2011. Since emerging from an international bailout program, Ireland has consistently lowered its debt burden relative to GDP, fueled by strong economic growth.

While S&P now rates Ireland at AA+, Fitch and Morningstar DBRS also hold an AA rating. Moody’s currently rates Ireland at AA3, one level below its peers. Credit ratings agencies’ assessments influence borrowing costs for governments and companies, though financial markets often anticipate these changes.

The upgrade comes on the heels of a strong start to Ireland’s 2026 funding program. The NTMA has already issued €6.25 billion in benchmark bonds this year, against a total funding range of €10 billion to €14 billion. This demonstrates continued investor confidence in Ireland’s financial stability.

Ireland’s economic surge in recent years, including a 12.3% GDP increase in 2025 according to the Central Statistics Office, has been a key driver of the improved credit rating. This growth was significantly boosted by a surge in exports, particularly from companies like Eli Lilly, which strategically shipped ingredients for weight-loss and diabetes treatments from its Cork facility in anticipation of potential tariffs from a new US administration.

Looking ahead, investors will be watching to see if this upgrade prompts similar actions from Moody’s and Fitch. Continued strong economic performance and prudent fiscal management will be crucial for Ireland to achieve the coveted AAA rating, which would represent the final step in its recovery from the financial crisis.