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Home Page > News > Ireland’s credit rating slashed to junk by Moody’s

Ireland’s credit rating slashed to junk by Moody’s

Agency predicts Ireland may need a further bailout

ANTOINETTE KELLY,

IrishCentral.com Staff Writer

Published Tuesday, July 12, 2011, 6:55 PM

Updated Tuesday, July 12, 2011, 6:56 PM

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Bank of Ireland on College Green, Dublin

Moody’s Investors Service officially cut Ireland’s credit rating to junk this Tuesday evening, with the prediction that Ireland will require a further bailout.

The ratings agency downgraded Ireland’s bond ratings by one notch, reducing it from Baa3 to Ba1, with a negative outlook.

“Although Moody’s acknowledges that Ireland has shown a strong commitment to fiscal consolidation,” it said “risks remain significant, particularly in light of the continued weakness in the Irish economy".

"The key driver for today's rating action is the growing possibility that following the end of the current European Union-International Monetary Fund support programme at year-end 2013 Ireland is likely to need further rounds of official financing before it can return to the private market, and the increasing possibility that private sector creditor participation will be required as a precondition for such additional support," Moody's said in a statement.

On April 15 last, the rating agency cut Ireland’s credit rating to the lowest investment grade.

"The negative outlook on the ratings of the Government of Ireland reflects these significant implementation risks to the country’s deficit reduction plan as well as the shift in tone among EU governments towards the conditions under which support to distressed euro area sovereigns will be made available," it added.
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Read More:
Irish bank deposits hit junk status

Moody’s downgrades Ireland's credit rating

IMF leaders back in Ireland to oversee bailout progress
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16 Comments

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JBRAFTREE | Jul 14, 2011, 10:53 AM EDT

Sirpeter and Mother and Mama, we, at least care where our two country's downward spiralling is leading us.

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mamaginnty | Jul 14, 2011, 06:56 AM EDT

Thursday morn and just heard the news, Moody are ready to class America as junk, like the rest of us. Not Billions..but trillions owed in the U.S. Mothers comment on the dole is a bit harsh, the welfare system in america is terrible, starvation and food stamps, degrading. No money no health care, no help and no pity for the poor in America, give me Ireland anytime....

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sirpeter | Jul 13, 2011, 09:06 PM EDT

JBRAFTREE.I'm getting the impression you find my comment's a little harsh on people.To have a person tear your comment apart is a good thing.It means you throw out your old opinion and replace it with the one that is better then the one you had.I don't want IC to be trashy tabloid experience.Mother's estrogen levels have hit an all time high and she has learned.

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Searlit | Jul 13, 2011, 07:07 PM EDT

I agree with sirpeter, unless you are part of the top 1%, your job will eventually be targeted, and you will be replaced by a lower wage worker. The only way to protect your rights is to protect the rights of others. That being said, everything should be done to rout out people who are abusing the welfare system. There shouldn't be a free ride. Welfare programs are there to support people who can't work or to provide income on a temporary basis to citizens. The taxpayers of any country shouldn't have to carry the costs of providing citizens of other countries with welfare benefits. It doesn't make any sense. It leads to an increase in demand for welfare. That's all it does.

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JBRAFTREE | Jul 13, 2011, 05:11 PM EDT

YES Mother, without Sirpeter's comments.

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sirpeter | Jul 13, 2011, 04:45 PM EDT

MotherIrish.You're right let's cut the social programs.Let's close all the women's shelters and let them stay at home to be battered some more by their violent drunken husbands.When you think about it.It's their own fault for marrying him in the first place.I think as well those young hoors who can't keep their knickers on and get pregnant.Should we just say,it's your own fault you are homeless & pregnant and nobody wants ya.Get yourself a nice cardboard box to live in.If you are a mother that comment down below tells me you have little or no understanding of the complexity of society.Now that you think it's a good idea to get the unemployed to do meaningful work doing another persons job.Maybe we can find an unemployed person to do your job or your husbands job for less money.We can give the balance to the IMF.What's that? You didn't think it might effect you?

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FastEddy | Jul 13, 2011, 11:55 AM EDT

Further bailout? Cut g'ment spending and cut taxes = the best way out = job creation revenue increases as businesses come back to the Celtic Tiger.

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Searlit | Jul 13, 2011, 11:35 AM EDT

Makes you wonder how much the Irish Government is willing to take of this whipping boy treatment. Ireland is being squeezed in a vice. The bondholders must yield or go broke!

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Trealach | Jul 13, 2011, 10:55 AM EDT

So WHAT!! get over it!! we will.

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MotherIrish | Jul 13, 2011, 10:40 AM EDT

This is socialism at it's best. Country has way too many folks on the dole. Cut the social programs, get those out of work to do meaningful work in exchange for the checks such as cut the public lawns, do publix works, everyone needs to tighten the belt. Cut out the welfare programs by 50% meaning that everyone does with 50% less and the amount owed to the IMF etc can be cut.

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PORTUGAL | Jul 13, 2011, 10:23 AM EDT

Facebook Users Declare War On Moody's And Make The Site Inaccessible In Portugal Read more: http://www.businessinsider.com/portuguese-facebook-users-take-on-moodys-and-win-2011-7#ixzz1RziK8cVe

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ancavker | Jul 13, 2011, 10:09 AM EDT

Larry Kudlow discussed Ireland's down grade last night, briefly, than after his comments, and I quote he stated "now lets talk about Italy a real country with a real economy". He may have not meant to be offensive, but I thought it was in poor taste. Why knock Ireland when it is already down on it's knees?

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citizen69 | Jul 13, 2011, 07:00 AM EDT

All this because we bailed out the banks. Three years on and the bankers are as strong as ever with huge bonuses, little regulation and no prosecutions... yet numerous countries are now crippled with debt because they gave all our money to the banks. the Corporations are too big to fail... but a country isn't!?

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sirpeter | Jul 13, 2011, 05:52 AM EDT

An analogy for the ratings agencies is offering a newspaper €1M to print a good story about you or nothing to print a bad story about you.Like the Irish media about property back in the celtic overdraft.These rating agencies haven't a fu*king clue what's going on - if they had, they would have made half of Europe,the UK and America "junk" about 5 years ago.

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LoyalCitizen | Jul 12, 2011, 08:48 PM EDT

Moody's got it wrong. Its worse than junk status because Moody's does not know how much corruption is in Ireland. When the corruption is exposed than Moody's might be able to forecast a better figure.

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