Moody’s hints it may not cut Ireland’s rating to junk

MOODY’S Investors Service says it differentiates significantly between European periphery countries, suggesting it may not imminently cut Ireland’s rating to junk in line with Portugal and Greece.

“Moody’s focuses its analysis on each country’s economic strength, fiscal plan and medium-term debt trajectory,” the ratings company said yesterday in an emailed response to questions on Ireland. “As reflected in the different ratings assigned to European periphery countries, we continue to differentiate significantly in terms of the credit profile.”

Moody’s on July 5 slashed Portugal to Ba2 from Baa1, on concern the country will need to follow Greece in seeking more aid. The rating company in April lowered Ireland’s credit rating to the lowest investment grade Baa3 and left the country’s outlook on negative.