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Moody's Downgrades Ireland To Aa2

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Ratings agency Moody's said on Monday it had downgraded Ireland's government bond ratings rating to Aa2 from Aa1 with a stable outlook.

"The timing isn't great, given the bond auction tomorrow and certainly this will add to the premium that will need to be paid to raise money.

"Some of this is understandable in the sense of the crystallization of contingent liabilities from the banking system and obviously comments suggesting last week that the deficit could be almost 20 percent of GDP are not great.

"I think it's over-dramatic in terms of Ireland's weakened growth prospects. While some it may be justified I think some of it is over the top.

"The peripherals are going to suffer again as a result."

Are Moody's leading the pack with this or have the other rating agencies already cut Ireland's credit rating?

Also isn't this slightly contradictory if there is a stable outlook why cut the rating? Surely that's a oxymoron?

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But but but its contained, wasn't it? :blink:


Hungary rules out austerity to IMF/EU

Topics:Economic newsEuropeCurrencies

8:21, Monday 19 July 2010

BUDAPEST (Reuters) - Hungary's government insisted on a new financial sector tax this year and ruled out further austerity measures at talks with international lenders that were suspended at the weekend, the economy minister said on Monday.

The forint plunged about 2.7 percent in early trading on Monday to 289.70 versus the euro after a review of Hungary's funding agreement signed in October 2008 fell through on Saturday when lenders said the new centre-right government needed to take tougher measures to rein in the budget deficit.

Government bond yields jumped 20-25 basis points after the open in illiquid trade.

Edited by Realistbear

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The agency said growth would be below historical trend over the next three to five years for two reasons: because banking and real estate will not contribute meaningfully, and the fall in private sector credit is dampening the growth outlook.

The Moody's downgrade put its ratings in line other agencies. S&P downgraded Ireland to AA in June 2009, after lowering it to AA+ from AAA in March 2009, while Fitch downgraded Ireland to AA+ from AAA in April 2009 and then to AA- in November 2009.

Moody’s has also downgraded to Aa2 from Aa1, the rating of Ireland’s National Asset Management Agency, its so-called bad bank, whose debt is guaranteed by the government.

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The World is short of money, but we can't get bugger all for our savings!


Well provided you are prepared to lend your money to a government who are unlikely to pay it back...

It's risk / reward. Everyone wants high interest rates with zero risk.

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  • 261 Brexit, House prices and Summer 2020

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