Moody's Downgrades Ireland Five Notches to Baa1 (IRE, AIB)
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Moody's Investor Service downgraded the debt of Ireland on Friday from Aa2 to Baa1, as the agency sees the government's financial situation deteriorating further.
The agency had warned that the country was on review in October and the result would likely result in a multi-notch downgrade of Ireland.
"Ireland's sovereign creditworthiness has suffered from the repeated crystallization of bank-related contingent liabilities on the government's balance sheet," said Dietmar Hornung, vice president, senior credit officer at Moody's.
The government in Ireland yielded to requesting a bailout package from the European Union and International Monetary Fund to avoid a default on its debt..
Ireland is now currently rated by Moody's three notches above speculative-grade range.
Shares of Bank of Ireland are down 3 percent to $2.68 in premarket trade on Friday, while shares of Allied Irish Banks are down 4.62 percent to $1.24.
The agency had warned that the country was on review in October and the result would likely result in a multi-notch downgrade of Ireland.
"Ireland's sovereign creditworthiness has suffered from the repeated crystallization of bank-related contingent liabilities on the government's balance sheet," said Dietmar Hornung, vice president, senior credit officer at Moody's.
The government in Ireland yielded to requesting a bailout package from the European Union and International Monetary Fund to avoid a default on its debt..
Ireland is now currently rated by Moody's three notches above speculative-grade range.
Shares of Bank of Ireland are down 3 percent to $2.68 in premarket trade on Friday, while shares of Allied Irish Banks are down 4.62 percent to $1.24.
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