From Aa1 outlook negative. EUR/USD slips below 1.2900, presently at 1.2890.

  • Moody’s says Ireland debt levels justify Aa2 rating
  • Irish government’s gradual but significant loss of financial strength, weakened growth prospects main drivers for downgrade
  • Expects Irish economic growth to be below historical trend over the next three to five years
  • Third key factor driving downgrade crystallization of contingent liabilities from banking system
  • Expects Anglo Irish bank may need further support