Ireland debt downgraded by Moody’s. ECB on deck.
Off to a wild start as Moody’s has cut Ireland’s sovereign rating to Aa1 from Aaa
Moody’s cites three thing with regard to their debt, the affordability, financeability and reversibility. Negative outlook reflects the risk to deterioration in the affordability – that is the cost for the debt – and the financeability (whether Ireland will be able to fund the debt a reasonable rates).
Moody’s expects the debt problems will remain unfavourable for several years. They also think the downside risks outweigh upside risks in the near to medium term.
The ECB interest rate decision will be made at 7:45 am. Although no change is expected, if there is a surprise (and it would be a surprise), it would be for a cut. Trichet will speak at 8:30 AM.




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