Standard & Poor's Global Ratings kept its A+/Stable/A-1 rating for the Republic of Ireland following the European Union's request to the member country to collect €13 billion in taxes from Apple Inc., since it will not "fundamentally change Ireland's credit metrics."
S&P noted that the requested sum amounts over 5% of Irish gross domestic product (GDP), or about 6% of gross general government debt. If all of the proceeds were to be used to cover government debt, it would be reduced to 80% of the GDP in 2017, and now stands at €208 billion.
The income from Apple tax obligation is not certain, since the Cupertino, California-based corporation is considering an appeal. The case revealed a split in the governing coalition, and the possible Ireland's own appeal against EU's ruling could ruin government's popularity in the country and complicate relations with some of the EU member states.
"The fear is that the ruling undermines Ireland's attractiveness as a business location for multinational corporations," in the country S&P now considers a stable in both institutional and economic terms.
The S&P implied that AA+/Stable/A-1+ rating for the technology company remained the same.
Image: EPA / Monica Davey
