Moody’s likely to upgrade credit rating after strong bank showing

The fact that Irish banks do not require any further capital could tip Moody’s into upgrading Ireland’s sovereign credit rating.

Cantor Fitzgerald analyst Ryan McGrath said the announcement that none of the banks will need any further capital is what the influential ratings agency, which currently rates Ireland’s sovereign bonds as junk, wanted to hear.

“This is the final straw that breaks the camel’s back and causes Moody’s to upgrade Irish sovereign debt,” he said.