Irish banks, despite facing a drag on profitability from problem loans, will fare fairly well over the next couple of years mainly because the economy will survive the fallout from the Brexit shock, Moody’s Investors Service has predicted.

Irish bonds outperformed its eurozone peers in the first trading day after Moody’s Investors Service upgraded Ireland’s debt pile and delivered a better-than-expected scorecard on the country’s economic outlook.

Lower tax revenues because of job losses due to the collapse in oil prices will hit budgets of US oil-producing states this year and next, Moody’s Investors Service said.