Fitch raises Irish debt rating

Washington: The Fitch ratings agency raised Ireland´s sovereign debt rating Friday, pointing to the increasing strength of the local banking sector.

The move marked the republic´s continuing recovery from the eurozone debt crisis. Fitch raised Ireland´s long-term sovereign debt rating to A+ from A, with a stable outlook.

Among lenders, the share of non-performing loans fell below 12 percent in the second quarter of this year, down from more than 25 percent four years ago, the agency said in a statement.

And in major Irish banks such as Bank of Ireland Group, tier-one capital has risen to 25.3 percent in the second quarter, up 1.6 percentage points in a year.

Meanwhile, the country´s debt-to-income ratio is falling, even though it remains the fourth-highest in the European Union, according to Fitch.

Ireland has a "wealthy, flexible economy," with strong institutions and among the highest per capita incomes of any country in the A category, the agency said.

But uncertainty surrounding EU-British negotiations and the future of trade relations with Britain remains a risk to growth prospects, according to Fitch.

British authorities have recently pledged to minimize the reemergence of trade barriers with the Republic of Ireland as a result of Britain´s impending exit from the European Union.