Moody's slashes Ireland's credit rating

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Moody's has slashed Ireland's credit rating despite the EU and IMF bailout. The bond rating agency has stressed that the high cost of rescuing Ireland's banks means the country's debt is significantly riskier.


Ireland's credit rating has been slashed by the ratings agency Moody's despite a bailout for the country from the European Union and International Monetary Fund earlier this month.


Irish Prime Minister Brian Cowen said he thought Moody's decision was a 'bit excessive'.


Brian Cowen, Irish Prime Minister, said, 'I'm disappointed that they were suggesting a negative outlook rather than a stable outlook which is what we believe is a fairer approach.'


The five-notch downgrade comes amid renewed efforts by EU leaders to restore market confidence.


The agency said the cost of rescuing Ireland's banking sector meant Irish debt was now significantly riskier.


It maintained Ireland's 'negative' outlook and warned of further downgrades in the future.


Although official figures released on Thursday showed a small rise in Ireland's GDP of 0.5 percent - investors fear the country's debt will require further restructuring in the future.



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