DAVY VIEW

As we had expected, on Friday (May 19th) S&P upgraded Ireland’s long-term sovereign rating to AA (from AA- previously) with a stable outlook. S&P highlighted Ireland’s resilient economic performance and better-than-expected out-turns in public finances and debt metrics as justifying the upgrade. S&P also welcomed proposals for a sovereign wealth fund as supportive of the improving net debt position and expects the Irish government to raise liquid assets to €50bn (16.4% of GNI*) in 2026.