The credit rating agency Moody won’t be upgrading its rating on Ireland’s debt to A status, unlike its competitors, S&P and Fitch.

In a short note in response to Tuesday’s budget, Moody’s noted “significantly” increased public spending this year, but said the government’s reduced deficit forecast of 1.2% for 2016, did not fundamentally alter its credit assessment on Ireland

In the context of the Chairman of the Irish Fiscal Council’s view that the overall level of spending in supplementary 2015 spending and in the 2016 budget was too expansionary, Moody’s Vice-President, Kathrin Muehlbronner, said the overall package was in line with expectations.

“Moody’s recently assigned a positive outlook to Ireland’s Baa1 long-term government bond rating, which reflects the marked improvement in the country’s credit fundamentals,” she said.

She did point out that Ireland’s public debt ration remains very high at close to 100% of GDP and that the key credit metrics would need to continue and be sustained, for the country’s rating to improve further.

The government predicts that our debt to GDP ratio will fall to 93% by the end of next year.