That generous blanket deposit guarantee from the Irish government is starting to look a little silly.
Ireland has become the first western European country to have its top-notch credit rating given a negative outloook by Moody’s Investors Service, in a further sign of the strains being put on national economies by the financial crisis.
Ireland has already been given a warning that it could soon lose its triple-A status by rival agency Standard & Poor’s, which has already downgraded Spain, Greece and Portugal in recent weeks.
(from the FT)
4 comments:
Is that a lucky leprechaun I see before me?
It's hilarious, isn't it? The CDS spreads on sovereign wealth go haywire - widening substantially... then after a few months... the ratings agencies say "you know, in the future, maybe there might be a bit more risk." You couldn't make it up.
Asteve,
I did wonder whether it was worth posting this story. As you suggest, it is a mystery why anyone pays any attention to rating agencies.
Alice
The higher they fly, the further they fall.
One prediction is that real estate in Ireland could fall by 80%
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