Ireland’s credit rating downgraded

As the Irish Times notes

Credit agency Moody’s has downgraded Ireland’s government bond ratings to Aa2, blaming banking liabilities, weak growth prospects and a substantial increase in the debt to GDP ratio.

However, Moody’s lead analyst for Ireland Dietmar Hornung said it was a “gradual, significant deterioration, but not a sudden, dramatic shift”, and the agency believed Ireland has “turned the corner”.

The general government debt-to-GDP ratio was at 64 per cent at the end of last year, up from 25 per cent before the financial crisis took hold, and is continuing to rise.

“Today’s downgrade is primarily driven by the Irish government’s gradual but significant loss of financial strength, as reflected by its deteriorating debt affordability,” said Mr Hornung.

Meanwhile, RTÉ reports 

The Taoiseach has criticised what he called the pervasive negativity in the media about the Irish economy.

Commenting on the downgrading of the economy by Moody’s, Brian Cowen said the National Treasury Management Agency had made clear we are a very stable economy.