Ireland’s Credit Downgraded to Junk
July 15th, 2011
Well, not yet anyway.
As if the situation in Europe couldn’t get any worse, more bad news came today from the credit rating agency Moody’s, who just announced that Ireland will join the growing list of Eurozone countries with junk bond status.
According to Moody’s, the credit of the government of Ireland was downgraded today, amidst concerns that the country will need further financing to stave off their mounting debt crisis. They are the third country to see their credit rating lowered to junk status after Portugal and Greece, and could be joined by fellow troubled country Italy in the near future.
Ireland is predicted to have debt represent 118% of their GDP by 2012, which all but ensures IMF and EU loans will be needed to dig the country out of the massive hole it finds itself in. The downgrade also reflects the slim possibility of Ireland being able to meet its debt obligations in the future.
It is becoming clear that the lights are going out all over Europe, and they might not be lit for quite some time. Only time will tell if America’s light goes out as well.
Posted by:
