Ratings agency Fitch has up upgraded Ireland’s sovereign credit rating.

One of the world’s three main credit rating agencies, Fitch cited the significant reduction in Ireland’s annual debt service costs, progress in restoring the banking system and favourable developments in eliminating contingent liabilities of the State as the reasons for the move.

It means Ireland’s sovereign credit rating with the agency is now A+, while Fitch also moved Ireland’s short-term rating to the highest category of F1+.

The upgrade follows similar moves by Moody’s in September and R&I in January of this year.

NTMA director of funding and debt management Frank O’Connor said: “This is the second major ratings agency upgrade for Ireland in the past three months. It reflects the significant and sustained improvements in Ireland’s fiscal position and the extent of the reduction in Ireland’s borrowing costs.”