Moody’s cuts Ireland rating to junk status

Following the recent downgrade of Portugal’s credit rating, credit agency Moody’s decided to downgrade Ireland’s debt rating to the junk status of Ba1 on Tuesday night.

The agency said it took the decision to downgrade the rating by one notch because there appeared to be an increasing likelihood that Ireland will seek more economic aid when the current bailout runs its course at the end of 2013.

The Irish Department of Finance criticized the decision saying it was a ‘disappointing development’ and that the EU member state had done all it could ‘to put our house in order’.

Moody’s warned there may be further downgrades on the horizon as the euro zone economy struggles to pull itself out of the current financial crisis.

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