Moody’s has placed Ireland’s rating on review for possible downgrade, due to the severe economic adjustment taking place. The agency says Ireland’s debt affordability metrics will probably be lastingly impaired.
Moody’s feels Ireland is constrained by the small scale of its economy relative to larger Triple A rated countries. They say the country’s rating could be cut to mid-to-high AA if review concludes Ireland will emerge from crisis with relatively weak growth prospects.
Another blow for the euro, which is trading lower, presently testing technical support at 1.3060. Support below comes at 1.3040.
However it has to be said the damage to the euro should be pretty limited given that Standard & Poors and Fitch have already stripped Ireland of its Triple A credit rating.
