Moody’s AAA rating retained

IRELAND'S AAA rating and “negative” outlook remain “completely appropriate” after the Government announced plans to cut spending by more than €2 billion, Moody’s Investors Service said yesterday.

Taoiseach Brian Cowen said yesterday he will introduce a pension levy for public workers and cut capital spending to plug a hole in the public finances. The government will also delay pay rises due to workers under a national wage agreement.

The plan “was basically as expected” Dietmar Hornung, a Frankfurt -based analyst at Moody’s, said in a telephone interview. “That said, our monitoring goes beyond yesterday’s announcements.”

Moody’s changed the outlook on Ireland’s rating from “stable” last week, increasing the chance the country’s top grade would be cut. Ireland became AAA in May 1998.