Moody's upgraded Ireland's debt two notches to Baa1, with a stable outlook

(MarketWatch) -- Moody's Investors Service on Friday upgraded Ireland's debt two notches to Baa1, with a stable outlook. Ireland's growth will pick up, speeding up ongoing fiscal consolidation and leading to a "significantly improved outlook" for the country's medium-term public debt, the debt ratings agency said. Ireland also enjoys an improved credit position relative to peers, Moody's said. "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," it added. Ireland's high public debt level, fiscal deficits and banking sector risks, including a high stock of non-performing loans, are the negatives.