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21 Sep 2013
Irish Ba1 bond rating changed from negative to stable by Moody’s
FXstreet.com (Chicago) – Moody’s Investors Service decided to change the Irish Ba1 government bond rating from stable to negative today.
What are the two key drivers supporting such decision?
Based on Ireland’s current deficit and the need to “re-establish debt-stabilizing surpluses in 2014” as noted in the institution’s official website, positive growth is “indispensable”. On the other hand, the country’s capacities to meet and honor liquidity obligations serve as a solid rationale to improve Ireland’s rating. As noted by the organization: “the second driver is Ireland's diminished susceptibility to a renewed loss of access to financial markets and the substantial improvement in its liquidity position”.
Outlook for further improvement
A better rating could materialize "if the government continued to comply with its fiscal consolidation targets, and growth were to resume at a pace that, together with consistent primary government budget surpluses."
What are the two key drivers supporting such decision?
Based on Ireland’s current deficit and the need to “re-establish debt-stabilizing surpluses in 2014” as noted in the institution’s official website, positive growth is “indispensable”. On the other hand, the country’s capacities to meet and honor liquidity obligations serve as a solid rationale to improve Ireland’s rating. As noted by the organization: “the second driver is Ireland's diminished susceptibility to a renewed loss of access to financial markets and the substantial improvement in its liquidity position”.
Outlook for further improvement
A better rating could materialize "if the government continued to comply with its fiscal consolidation targets, and growth were to resume at a pace that, together with consistent primary government budget surpluses."