Go Finance Reporting in DUBLIN - Moody's Investors Service lowered the credit rating two levels to Baa3 Ireland than previously Baa1. This is because the outlook for Irish economic growth is weak and government finances are expected to decline.
"Moody's today downgraded the bonds of foreign governments and the local currency of Ireland are two levels to Baa3 from Baa1,"according to the Moody's statement, quoted by AFP on Friday (04/15/2011).
Added party Moody's, the credit rating outlook remains negative Ireland, so there is a possible reduction in credit rating again in the future.
Downgraded by rating agencies like Moody's, can raise the cost of borrowing in financial markets that hit them. Thus making them more difficult funding issues to be managed, while the Irish are already struggling to pay the huge debt. (GoFinance)
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