Moody's about Ireland by Barbora Misakova

Talking about the crisis is nothing new. Everyone – all economic analysts and politicians around the world have been talking over and over about it, what it caused, where did it lead and what else should we expect. Many financial agencies were analyzing situation of all, not only European, countries and what effect the crisis had on them. Moody’s Corporation, the holding company for Moody’s Investors Service, made such a rating of Ireland economic situation. This Celtic Tiger, as the Ireland is called, was one of the wealthiest countries in the OECD and had the best quality of life in the world. These days, when the world economic crisis is gone, the wealt! h of this English-speaking country is gone as well. As Moody’s agency informed, Ireland’s economy is greatly weakened by radical action to fight debt and rescue banks. However it may be stabilizing slowly. This top rating agency downgraded Irish debt rating to Aa2 from Aa1 on Monday what should mean that Irish economy gets from negative situation to stable. Moody’s blames high debt levels, weak economic growth prospects and the huge cost of rescuing banks. These are the main factors that caused Irish debt’s downgrade. The government’s gradual loss of financial strength is the first key factor and one of the main drivers for the downgrade. The second one is weakened growth prospects and last but not least it is crystallization of contingent liabilities from the banking system. Ireland, which pumped huge sums of money into crisis-hit banks, has spent almost 25 billion Euros so far.

related story (sgx17856): http://www.france24.com/en/20100719-moodys-rating-agency-dow...

by Barbora Misakova for Cantell TV (http://cantell.tv)

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