Ireland’s credit rating downgraded to junk

Reuters reports that, because Ireland will likely need more financing, it is downgrading Ireland’s credit status to┬áBa1–of questionable credit quality. The expectation is that there are further falls to come as the prospect of burden sharing, refinancing, or some other combination of unpleasant events, looks increasingly likely. RTE report that the Department of Finance think this is a ‘disappointing development’. Me too.

I’m interested in commenters’ reactions to this news. Does it matter? Is it a sign of things to come?

Colm was right when he said we should fasten our seatbelts.