Ireland has had its sovereign credit rating upgraded by rating agency Standard & Poor's. It sees the rate go to A- from its previous level of BBB+.

The agency has also issued a positive outlook for the economy. It is the first 'A' rating for Ireland since our return to the bond markets.

"The upgrade reflects our view of the brightening prospects for Ireland's domestic economy, which we expect to underpin further improvements in the government's financial profile, capital markets access, and financial system asset quality" the agency said.

The Minister for Finance Michael Noonan said "“This upgrade to A- rating by S&P’s highlights the continued improvement in Ireland’s credit worthiness".

"I am particularly pleased that this upgrade is being driven by S&P’s view on the improved prospects for the domestic economy".

"This is a view I share and with thousands of jobs being created each month, strong exchequer performance and with positive high-frequency indicators, I am confident that we are moving in the right direction" he added.

The Department of Finance says the actions that government has taken to reduce the contingent liability on the Irish state have been recognised by the rating agencies.

"S&P’s specifically recognise the benefits to Ireland’s credit worthiness from NAMA’s accelerated bond repayment. De-risking Ireland’s is a key priority and it is particularly apt that this rating upgrade is being released just hours after the publication of the details of the IBRC Special liquidation" it adds.

The National Treasury Management Agency (NTMA) has also welcomed the upgrade.

NTMA Chief Executive John Corrigan said "It represents a further confirmation of the continuing positive assessment of Ireland by the major credit rating agencies".

"It also underpins the already strong investor sentiment towards Ireland and provides a very supportive backdrop for the remainder of the NTMA's funding programme in 2014".

The NTMA also adds that the bond market access achieved by Ireland, and the progress made by NAMA, are among the positive factors cited by S&P.