Moody’s on Ireland

The developments of the past fortnight in Cyprus and at EU level play heavily in Moody’s assessment of Irish government bonds affirming their Ba1 rating (non-investment grade or ‘junk’ status) with a negative outlook. 

The statement can be read here.

8 thoughts on “Moody’s on Ireland”

  1. The banks’ collective failure, and indeed unwillingness, to address the residential mortgage crisis is now officially affecting our credit rating.

    Does this suggest that it will in turn affect borrowing costs for the banks?

    If so, will it be enough to prompt the Irish banks to start resolving problem mortgages whether by substainable restructuring or repossession?

    If it does spur them into action do they have the institutional capacity to carry out the task efficiently?

    Or maybe they’s just keep watching ‘Neighbours’ on day-time TV…

  2. @ Zhou

    “The banks’ collective failure, and indeed unwillingness, to address the residential mortgage crisis is now officially affecting our credit rating.”

    actually, its not really it would seem (subsequent comments just out)…decision to not upgrade seems almost exclusively based on Cypriot/EU issues.

    *MOODY’S: NO SET SCHEDULE TO REVIEW IRISH RATING, AS APPROPRIATE
    *MOODY’S SAYS IMPORTANT TO UPDATE MKT ON IRISH RATING FACTORS
    *MOODY’S: UNCERTAINTY FROM CYPRUS BAILOUT HASN’T HELPED IRISH
    *MOODY’S SAYS EURO AREA CRISIS ABATED, NOT GONE AWAY
    *MOODY’S SAYS IRISH BANKS HAVE `COMFORTABLE’ CAPITAL BUFFER
    *MOODY’S SAYS INVESTORS `VERY ENTHUSIASTIC’ ABOUT IRISH STORY
    *MOODY’S CREDIT ANALYST KRISTIN LINDOW SPEAKS IN PHONE INTERVIEW
    *MOODY’S SAYS IRELAND CAN STAY OUT OF MKT FOR SOME TIME IF WANTS
    *MOODY’S SAYS EURO AREA CREDIT NEGATIVE AS IRISH TARGET AID EXIT
    *MOODY’S SAYS DOESN’T EXPECT IRISH BANKS TO NEED MORE CAPITAL
    *MOODY’S SAYS IRISH BANKS ARE VERY WELL CAPITALIZED

  3. @bond Eoin bond

    Why is it important that Moodys update market with confirmation of Irish “Junk” status in the midst of Cypriot fiasco?

  4. @ Bond. Eoin Bond

    +1
    Indeed we can always rely on Mr. Bond to give us the facts without any emotions getting in the way which I too appreciate very much.

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