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Department of Finance 'disappointed' by Ireland's junk status

Moody’s decision to downgrade appears to indicate we’ll need a second bailout.

Ireland's credit rating is at junk status according to Moody's
Ireland's credit rating is at junk status according to Moody's
Image: Gurinder Osan/AP/Press Association Images

THE DECISION TO downgrade Ireland’s credit rating to junk status has been criticised by the Department of Finance.

Ireland was yesterday downgraded to the highest junk grade, Ba1, on the prediction from the credit ratings agency Moody’s that the country would probably need more financing before it can return to private debt markets.

The Department of Finance criticised the “disappointing development” and noted that Ireland’s rating with other agencies including Standards & Poor’s, Fitch and DBRS remained within the investment grade band, RTÉ reports.

The spokesperson pointed to the fact that Ireland had met all the “quantitative fiscal targets” set down under the EU/IMF bailout programme and that the country was on track to achieve its targets for deficit reduction for the year as a whole.

“This is a disappointing development and it is completely at odds with the recent views of other rating agencies,” a spokesperson said.

The National Treasury Management Agency (NTMA) said that Ireland has sufficient funding “to cover all its financing requirements until the end of 2013″.

Read: Moody’s downgrades Ireland to ‘junk’ >

Read: EU to hold emergency meeting to tackle ‘contagion’ >

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Hugh O'Connell

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