Ireland downgraded by Moody's to BA1 Junk Outlook Negative

[DCon]

Did not take too long

Still turning that corner!!


Moody’s downgrades Ireland to BA1 (junk); outlook negative


Key driver the growing possibility that Ireland will need more official fiance before being able to return to private markets (same story as Portugal)
Implementation risk high in light of continued weakness in Irish economy
Further downgrade will be considered if Ireland fails to reach fiscal goals


http://www.forexlive.com/blog/2011/07/12/moodys-downgrades-ireland-to-ba1-junk-outlook-negative/

[Fugee]

LMAO, but the fundamentals are sound. The bailout is working. Blah Blah Blah. FF= FG.

[ang]

doesn't matter anymore as far as the EU/ECB are concerned the ratings agencies have got it wrong and they (agencies) do not understand the complexities of the eurozone situation.

[TotalMayhem]

Oh Noes...

[morticia]

doesn't matter anymore as far as the EU/ECB are concerned the ratings agencies have got it wrong and they (agencies) do not understand the complexities of the eurozone situation.

Well, as long as the EU are in our tent, p!ssing out......

The ratings agencies are a total waste of space IMO. Not that this means the EU is actually solvent, of course.

But heck, the ECB will just have to print money.

[Griska]

I just posted this on the "Domino effect" thread. Copy n' paste:


Quote:
Credit agency Moody's has tonight downgraded Ireland's debt rating to the junk status of Ba1.

Moody's said it reduced the rating by one notch because there was a 'growing likelihood' that Ireland will need more bailout aid in late 2013 when the current bailout ends. http://www.rte.ie/news/2011/0712/economy1.html

Clever lads, those Moody people.
They would love to see debt spiral into concentric cirlces.

[DCon]

The Comish weighs in


EU Commission: Decision by Moody’s to downgrade Ireland rating is “incomprehensible”

http://www.forexlive.com/blog/2011/07/13/eu-commission-decision-by-moodys-to-downgrade-ireland-rating-is-incomprehensible/

[DCon]

And, inevitably


Moody’s downgrades govt-guaranteed debt of 5 Irish banks

http://www.forexlive.com/blog/2011/07/14/moodys-downgrades-govt-guarantted-debt-of-5-irish-banks/

[ang]

That should help with BOI rights issue.

[Captain Con O'Sullivan]

Strange that it is the ratings agencies which were fluffing the boom and are now the only ones pointing to reality.

Curiouser and curiouser.

[ang]

Moodys have downgraded the ESB to junk status:-


London, 14 July 2011 -- Moody's Investors Service has today downgraded the rating of Electricity Supply Board ("ESB") and the guaranteed debt issued by its finance subsidiary, ESB Finance Limited, by two notches to Baa3 from Baa1. Moody's has concurrently downgraded to (P)Baa3 from (P)Baa1 the rating of the group's EMTN programme and ESB's short-term debt by one notch to Prime-3 from Prime-2. The ratings had been on review for downgrade since 18 April 2011 and remain on review for further possible downgrade after today's rating action.

RATINGS RATIONALE

Today's rating action was triggered by Moody's one-notch downgrade of the sovereign rating of the Republic of Ireland to Ba1 from Baa3 on 12 July 2011. The outlook on the sovereign ratings is now negative.


Despite ESB's currently solid standalone financial position, its ratings are constrained by that of Ireland due to the company's inability to disconnect itself from local economic and market circumstances. In accordance with Moody's previously published guidance, infrastructure and utility companies would not normally be expected to have a rating more than two notches higher than the government of the country in which the majority of their business is located. A one-notch, rather than two, notch differential between ESB and Ireland is considered appropriate given the group's limited amount of non-domestic revenue and its exposure, as a largely state owned company, to the potential consequences of government's limited financial flexibility.

http://www.moodys.com/research/Moodys-downgrades-Electricity-Supply-Board-to-Baa3-from-Baa1-maintains?docid=PR_222405

[Baron von Biffo]

Is anyone looking at the ratings agencies and whether there's any possibility of them abusing their power so as to improperly manipulate markets?

[Griska]

Is anyone looking at the ratings agencies and whether there's any possibility of them abusing their power so as to improperly manipulate markets?

Baron, isn't that the most obvious question that never seems to be asked?

One stroke of a pen/keyboard from these people appears to have the potential for enormous damage.

[Skrimshander]

Is anyone looking at the ratings agencies and whether there's any possibility of them abusing their power so as to improperly manipulate markets?

there is one man asking that question

‪Keiser Report: Ratings Racket (E163)‬‏ - YouTube

[Baron von Biffo]

Baron, isn't that the most obvious question that never seems to be asked?

One stroke of a pen/keyboard from these people appears to have the potential for enormous damage.

And enormous profit.

[TotalMayhem]

http://i.imgur.com/lxSE3.jpg

On sale here (http://76714.spreadshirt.ie/).