Moody’s remains negative on Ireland

The Government’s attempts to make a sustainable exit from the EU/IMF bailout programme have been dealt a fresh blow with the news that credit ratings agency Moody’s has reaffirmed Ireland’s sub-investment grade rating with a negative outlook.

Moody’s is the only one of the three big ratings agency to have Ireland classified as junk status. The Ba1 rating excludes certain types of investment funds from investing in Irish sovereign debt.

Moody’s attributed the eurozone’s ongoing debt crisis and vulnerability to shocks, particularly the recent decision to “bail-in” Cypriot bank depositors, as part of the reason for the leaving the rating unchanged.