Ireland's beleaguered economy has suffered another blow after its credit rating was cut to junk status on fears that it will need further bail-outs.
The country joins Portugal and Greece to become the third euro-area nation to be reduced to non-investment grade. The downgrade by Moody's came as it emerged European leaders will hold an emergency summit on Friday in an effort to contain fallout from the sovereign debt crisis sweeping the Continent.
Ireland's rating was lowered to Ba1 from Baa3 on Tuesday night. The country, which had a top Aaa rating just over two years ago, lost its investment status after the once booming property market imploded, causing banking collapses requiring huge bail-outs that saw the country's debt surge.
Moody's said that reason for the downgrade was a growing possibility that once the current €85bn European Union/ International Monetary Fund rescue package ends in 2013, Ireland is likely to need further bail-outs before it can return to the bond market.
The European Commission said it "regrets" Moody's decision to downgrade, adding it "contrasts very much with the recent data, which support a return to GDP growth this year, and the determined implementation of the [austerity] programme by Dublin".
Moody's had previously cut Ireland's credit rating two levels on April 15 to the lowest investment grade.
The Telegraph
More:
http://www.telegraph.co.uk/finance/economics/8633665/Irish-bonds-cut-to-junk-status-on-bail-out-worries.html
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The country joins Portugal and Greece to become the third euro-area nation to be reduced to non-investment grade. The downgrade by Moody's came as it emerged European leaders will hold an emergency summit on Friday in an effort to contain fallout from the sovereign debt crisis sweeping the Continent.
Ireland's rating was lowered to Ba1 from Baa3 on Tuesday night. The country, which had a top Aaa rating just over two years ago, lost its investment status after the once booming property market imploded, causing banking collapses requiring huge bail-outs that saw the country's debt surge.
Moody's said that reason for the downgrade was a growing possibility that once the current €85bn European Union/ International Monetary Fund rescue package ends in 2013, Ireland is likely to need further bail-outs before it can return to the bond market.
The European Commission said it "regrets" Moody's decision to downgrade, adding it "contrasts very much with the recent data, which support a return to GDP growth this year, and the determined implementation of the [austerity] programme by Dublin".
Moody's had previously cut Ireland's credit rating two levels on April 15 to the lowest investment grade.
The Telegraph
More:
http://www.telegraph.co.uk/finance/economics/8633665/Irish-bonds-cut-to-junk-status-on-bail-out-worries.html
hostgator coupon 2011
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