Once again, Moody’s arrives late to the party.
Moody’s Investor Services Inc. on Monday cut Ireland’s credit rating, citing a rising debt burden, a weak growth outlook and the high cost of rebuilding a shattered banking system.
The ratings agency lowered Ireland’s credit rating to Aa2 from Aa1, with a stable outlook, indicating that it isn’t likely to consider a further downgrade soon.
This feels like last week, when Moody’s downgrades Portugal, or as we put it, when Portugal downgraded Moody’s, because after it happened, the market basically yawned.
Irish CDS are widening, but this isn’t having a huge impact. The euro is still above $1.29, and US futures are ticking higher.