S&P Upgrades Ireland's Sovereign Debt Rating on Economic Growth, Financial Strength

By Kelly Cloonan

S&P Global Ratings boosted Ireland's sovereign credit rating, citing the country's growing economy and improved resilience to economic and fiscal shocks.

The ratings agency on Friday raised Ireland's rating one level to AA+ from AA. The outlook is stable.

S&P said Ireland's domestic economy has expanded by close to 5% on average for five consecutive years, even as the U.S., one of its key trading partners, has moved toward more protectionist trade policies.

Last year, the Irish economy likely expanded by 4.9%, while gross domestic product climbed 12%, S&P said.

The country has continued to enjoy low effective tariffs on exports to the U.S., given most pharmaceutical products--a key export for Ireland to the U.S.--have largely had tariff exemptions, S&P said.

The Irish government has also taken advantage of its recent economic success to rebuild fiscal buffers. S&P is forecasting its budgetary performance will remain strong and result in surpluses during the next few years.

Still, given its reliance on exports, Ireland's economy will likely remain sensitive to tariffs, tax realignments or decisions by the handful of multinational companies that contribute to a large part of the government's corporate tax receipts, S&P said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

March 20, 2026 19:15 ET (23:15 GMT)