Moody's downgrades Irish debt

The credit rating agency Moody's has today further downgraded Irish debt.

The country is now rated Aa2, down from Aa1.

The agency is citing the Irish Government's gradual but significant loss of financial strength during the last 13 months for its decision.

"Today's downgrade is primarily driven by the Irish Government's gradual but significant loss of financial strength, as reflected by its deteriorating debt affordability," said Moody's senior credit officer Dietmar Hornung.

The firm has upgraded its medium-term view of Ireland to 'stable', however.