Moody’s rates Irish banks as ‘junk’

DARA KELLY,

IrishCentral.com Staff Writer

Published Sunday, February 13, 2011, 10:44 AM

Updated Sunday, February 13, 2011, 10:44 AM

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The credit ratings agency Moody's yesterday cut its rating of four Irish banks to junk status, citing its concerns over the imminence of new funding which was due at the end of February.

The outgoing Irish government told the press this week it will not make extra funds available before the general election on 25 February.

But the main Irish opposition parties, who are assured to form the next government, have expressed their opposition to further bank aid for Ireland.

Bank of Ireland, Allied Irish Banks, EBS Building Society and Irish Life & Permanent were all downgraded by the agency.

Meanwhile, Anglo Irish Bank and Irish Nationwide, both of which have already been given junk status, were cut even further.

Moody's Investors Service is one of the big three credit ratings agencies.

Nster.com

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robertsgt40 | Feb 15, 2011, 10:49 AM EST

Where was Moody's when Wall Street was puking out all the garbage over the last 6yrs that has taken down the world's economies? Subprime ring a bell?

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Dublinjas | Feb 14, 2011, 01:37 AM EST

With the German takeover of the NYSE and the US. Dollar quickly losing its luster as overprinted confetti money is apt to do, and with China who holds Billions of US debt now favoring the Euro can collapse of the dollar be far away. The US Dollar has been the Worlds reserve currency since the end of the second world war and the subsequent Bretton Woods Agreement, under the Bretton Woods System the US Dollar was given primacy as the currency of international settlement, for example Oil, and Gold are quoted in US Dollars. What you are now starting to see is a move over to a currency which is seen as a more stable one, the Euro, ever since China (which holds more than 500 Billion US Dollars in foreign reserves) started (in effect) dumping US dollars by buying up everything for sale around the world, and has now increased her trade with Europe far beyond that of the US, the Euro as a currency has gained China's confidence and thus the world at large.Also many large Oil producing nations are now demanding Euro instead of the Dollar for their product. Of course with every change their are winners and losers, I fear the US is going to ultimately be the loser here as the Dollar will likely be devalued and plunge in international Forex markets.

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