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Moody’s Slashes Ireland Rating To BAA1

From an unfazed Reuters:

Moody’s slashes Ireland to Baa1, warns on future debt

By Padraic Halpin

DUBLIN, Dec 17 (Reuters) – Moody’s Investors Service slashed Ireland’s credit rating by five notches to Baa1 with a negative outlook from Aa2 on Friday and warned further downgrades could follow if Ireland was unable to stabilise its debt situation.

Ireland’s debt levels have quadrupled since late 2007 on the back of a banking sector meltdown, and it needs solid economic growth to ensure it can meet repayments and fiscal targets set down in the 85 billion euros [$112.7 billion] EU/IMF bailout agreed last month.

And Ireland managed to quadruple its debt without a Barack Obama.

Moody’s downgrade followed Fitch’s move last week to become the first ratings agency to strip Ireland of its ‘A’ credit status, cutting it by three notches to BBB+ following the debt-stricken government’s request for an EU/IMF bailout…

"While a downgrade had been anticipated, the severity of the downgrade is surprising," Dublin-based Glas Securities said in a note

While a pre-Christmas market lull may have led to a temporary truce in the onslaught against peripheral euro zone debt, ratings agencies have been busy flagging up the fact that risks are undiminished.

Just prior to its downgrade of Ireland, Moody’s said late on Thursday that it had put Greece’s Ba1 rating on review for a possible downgrade, citing uncertainty over the country’s ability to cut debt to sustainable levels.

Moody’s put Spain’s debt on review for a possible downgrade on Wednesday, highlighting concerns over a funding crunch next year, although it said it did not expect Madrid to have to resort to a bailout as Greece and Ireland have.

And Standard & Poor’s said this week it may cut Belgium’s debt rating if the country’s inability to form a government threatened deficit- and debt-reduction goals…

Moody’s said the crystallization of bank related contingent liabilities, increased uncertainty regarding [Ireland’s] economic outlook and decline in the government’s financial strength were the key drivers of the action.

"Should Ireland’s adjustment capacity prove to be insufficient to stabilize debt metrics in the foreseeable future, a further rating downgrade would follow," Moody’ said.

Don’t worry. It can’t happen here.

Obama and the Democrats have repealed the laws of economics for the United States. In fact, it’s the only kind of ‘American exceptionalism’ they believe in.

This article was posted by Steve on Friday, December 17th, 2010. Comments are currently closed.

7 Responses to “Moody’s Slashes Ireland Rating To BAA1”

  1. GetBackJack says:

    And all the sheep replied …. Baaaaa-d

  2. NoNeoCommies says:

    Comment from a Leprechaun:
    “I’m moving my pot-o-gold to the Cayman Islands until the crisis is over, lest the Government finds it.”

  3. River0 says:

    I’m sure glad it can’t happen here! It’s never happened before, so it can’t ever happen. Also, this is America, and we’re number one! We went to the moon, built a lot of space stuff like the Shuttle, and the world is in awe. Our financial people are the smartest in the world, too.

    • proreason says:

      Yes, people and countries who still have money to lend will make an exception for the United States because President Obamy is the country’s first 1/8 black, 3/8 Arab, 1/2 white President, and because he sure knows how to deliver a speech.

      They will be more interested in supporting a spendthrift dirtbag than they will be in getting a return on their lending investments, because they don’t want to hurt the boy king’s chances for a lifetime dictatorship.

    • tranquil.night says:

      Amazingly enough there are, or were for a while, quite a few billionaire investors and organizations who seemed quite content to let their money ride on Obama fascism.

      And they are very upset and skiddish that they haven’t got their carbon markets amidst the implosion of Global Frauding.

      Don’t worry fellas. California Cap and Trade is primed and ready!

  4. canary says:

    Pro, well said. There’s been a lot of articles from Israel that Obama presidency of bowing to his Saudi Arabia ancestors,
    has lost Bush’s pressure & close eye on them. Saudi Arabia seem to be mingling with the Middle East terrorist pack; more openly.

    tranquil.night The American environmental fraud & theft is sneakily going at full speed ahead.
    Get involved locally and try and stop the primitive unreliable turbine windmills & solar panels. At least hospitals have generators.

  5. GetBackJack says:

    In a recession or depression money doesn’t disappear, it changes pockets.

    The people who understand the fiat cycles just change their business model and continue to profit. Everybody else wonders what happened.

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