Fitch has revised Eir's outlook grade to positive from stable and affirmed its long-term issuer default rating at 'B'.

The ratings agency said the former Eircom "continues to present an increasingly stable business profile," adding that it saw the company's equity value at €1.1 billion.

“The company’s fibre investment has been transformational while its commercial strategy is progressive and delivering solid and increasingly visible financial results,” the agency said.

“In a competitive market place, access losses are stabilising, broadband lines and fibre take-up growing well,” it added.

Fitch said the stabilisation of Eir’s business should lead to greater cash flow generation in the future.

“While residual restructuring and voluntary leaver costs are likely to impact results through to 2017, these are marginal in terms of the overall cash flow. Fitch believes operating cash flows have been stabilised and are likely to increase over the coming years,” it said.