Fitch: Irish fiscal pact approval 'positive'

FRANKFURT (MarketWatch)
Fitch Ratings on Monday said the "yes" vote in last week's Irish referendum on the euro-zone fiscal pact is "positive" for the sovereign, removing a potential source of uncertainty about the country's future funding prospects
Around 60% of voters favored the pact, which aims to enshrine tough budget rules across the currency area
Fitch said a "no" vote would have put added downward pressure on Ireland's BBB plus rating because it would have prevented the company from receiving funds from the region's permanent bailout fund, the European Stability Mechnanism, after the country's currenty European Union-International Monetary Fund bailout program ends next year
Approval of the referendum, however, doesn't put upward pressure on Ireland's rating, either, Fitch said
"Export-orientated Ireland is exposed to an economic downturn in its major European trading partners, though its improving competitiveness mitigates the impact of such adverse external shock
And with yields on Irish government bonds maturing after 2013 in excess of 7%, the timing and cost of Ireland's return to the debt markets remain unclear," said Fitch, which affirmed a negative outlook on Ireland's rating in January