Moody’s stands firm on Irish rating

The credit ratings agency Moody’s will not be changing Ireland’s sub-investment-grade rating despite the improved economic performance and this week’s successful syndicated tap bond issue.

NTMA chief executive John Corrigan blamed Moody’s subinvestment-grade rating of the Irish economy as part of the reason why it costs this country 300 basis points more than Germany to raise money on the debt markets.

Moody’s is the only ratings agency to have Ireland at junk status. A number of pension funds and institutional investors are excluded from investing in subinvestment-grade bonds.