Fitch retains Irish outlook

FITCH maintained its outlook for Ireland’s BBB+ rating yesterday after it said the budget demonstrated Dublin’s commitment to fiscal consolidation and a determination to hit its EU/IMF bailout targets.

Fitch upgraded its outlook for Ireland in April from ratings watch negative to outlook negative, meaning it did not expect a downgrade in the near term and said a fresh budget consolidation of €3.8 billion did not change that view.

However, after Ireland cut its outlook for gross domestic product (GDP) growth next year to 1.3% from 1.6%, Fitch warned a worsening of the eurozone debt crisis would further damage growth prospects.