Huge downgrade in Irish credit rating

thebman

Don't know why this hasn't been posted here yet but here we go:

The Fitch ratings agency has downgraded Ireland's credit rating by three notches, from A+, to BBB+.

It has put the country on a stable outlook, but blamed the downgrade on the additional costs of restructuring and supporting the banking system.

While ireland has received some security through IMF and EU funding, the agency says the uncertain economic outlook and loss of market access had also contributed to the decision.

http://www.breakingnews.ie/ireland/huge-downgrade-in-irish-credit-rating-485054.html

And the banks sink us further into the sink hole with them.

LetsThinkBIG

These banks gave BoI, Anglo and AIB great ratings in 2007.
They didnt highlight their dependancy on the property sector, which was obviously overflated.

So, Mr.Moodies and Mr.Fitch don't got any real working basis tbh !

cml387

Where does BBB+ leave us now relative to other countries?

Anonymous1987

Weren't we on a negative outlook? at least we've reached stable now. I'd be more concerned about LCH clearnet, they've made it very expensive to purchase Irish government bonds requiring a 45% margin to trade.

http://www.bloomberg.com/news/2010-11-25/lch-clearnet-says-extra-margin-for-irish-bonds-will-increase-to-45-percent.html

ei.sdraob

cml387 wrote: »

Where does BBB+ leave us now relative to other countries?

Among Libya and South Africa

tho our risk of default in next 5 years is still ~50%

BBB+ is just one notch above junk, where many funds are not allowed to invest in

Sand

Sounds like Mr Lenihan needs to do a roadshow

rumour

ei.sdraob wrote: »

Among Libya and South Africa

tho our risk of default in next 5 years is still ~50%

BBB+ is just one notch above junk, where many funds are not allowed to invest in

Oh **** from my perspective!!

Mister men

And still FF remain in power :rolleyes:

mistermouse

Does it matter considering we are now IMF funded

Bond Markets have played us, we are now just in the listings, not the reviews

thebman

mistermouse wrote: »

Does it matter considering we are now IMF funded

Bond Markets have played us, we are now just in the listings, not the reviews

It matters as it is essentially our international credibility index.

Does it matter if you have a bad credit rating if you don't need a loan right now but you know you will in the future?

I would say yes it does matter.

Number Nine

What a joke

Credit rating company themselves are part responsible for this mess in the first place.

Why was there no investigation into these company actions in the last 5 years.

Maj Malfunction

Our rating reflects where we are now. Worse case, we get downgraded to junk, best case, the only way is up!

Well when Comical Lenny & Biffo the Clown depart from government next year, I'd be confident our international credibility can only improve!