Moody’s Places Ireland’s AAA Rating On Review For Possible Downgrade

Moody’s places Ireland’s AAA sovereign ratings on review for possible downgrade
- Action reflects the severe economic adjustment taking place in Ireland, which threatens to undermine the country’’s low tax, financial services-driven economic model
- The govt’s debt affordability metrics will probably be lastingly impaired.
- While Moody’’s acknowledges that the authorities are being proactive to the extent possible in their effort to restore the country’’s economic and financial stability, their room for manoeuvre is limited at this point.
- Should Moody’’s come to the view that Ireland will emerge from the crisis with relatively weak growth prospects and a much higher debt burden for the foreseeable future, Ireland would be downgraded to the mid- to high Aa rating range.
- As is its usual practice, Moody’’s review will be completed within three months.

***Reminder: Back on Mar 30th: S&P lowered Ireland’s sovereign rating one notch to AA+ from AAA; outlook negative

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