The Finance Minister Michael Noonan has said he expects the ratings agency Moody's to improve Ireland's credit rating following an EU deal giving the Government more time to repay Ireland's bailout loans.

Speaking as he arrived on the second day of an EU finance ministers meeting in Dublin Castle - Minister Noonan said Ireland has had a series of "credit enhancing" events since January.

Minister Noonan's call comes after  EU Finance Ministers yesterday agreed to allow Ireland seven more years to pay back its bailout loans.

A ratings improvement is seen as important in reducing the cost of Irish borrowing - and would be an indicator of investor confidence in Ireland.

Minister Michael Noonan said he hopes the Moody's agency - which has been slow to improve Ireland's rating - will now act.