Surprise at Moody’s decision not to upgrade

Ratings agency Moody’s left its rating of government bonds unchanged in what amounted as a surprise to many commentators.

In leaving Ireland out of a list of upgraded countries last week, Moody’s went against conventional wisdom which said it was likely to upgrade sovereign bonds to A3 — one notch above the current rating.

Moody’s decision was the second time in a row it had overlooked Ireland despite its strong economic growth. Its last upgrade to the Irish sovereign came by way of a two-notch movement to Baa1 last May.