Moody's: the village idiots of international finance spinning on their failures


Well-known member
Jan 18, 2006
They want to downgrade Ireland, and have to decided to spin and pretend the bailout is the problem:

Ireland bailout - live coverage | Business |

5.51pm: Credit rating agendy Moody's revealed this afternoon that it is preparing to hit Ireland with a substancial downgrade.

Moody's announced that the bailout was likely to make Irish sovereign debt riskier, as it would transfer liabilities from its banking sector onto the state:

A multi-notch downgrade, leaving the rating of the Republic still within the investment-grade category, is now the most likely outcome of our review of the sovereign credit.
You could argue that Moody's is a little late to the party. It currently gives Ireland an Aa2 rating, two rungs down from the Triple-A gold standard, and could drop it seven notches before putting the country into junk status.
It was the Sept 2008 guarantee which gave the State the bank's liabilities... not this IMF bailout . Moody's called Ireland's rating wrong... and now now trying to spin their way out of it.



Well-known member
May 22, 2004
cyberianpan said:
It was the Sept 2008 guarantee which gave the State the bank's liabilities... not this IMF bailout .
The guarantee put the state on the hook for those liabilities, but the guarantee had an expiry date.

This 'bailout' (read: loan package) will impale the state on that hook forever. The ECB has seen to that.

Naturally, given the sheer size of those banking sector losses, the long-term sovereign credit of Ireland is damaged, even as the tens of billions of euros ensure there's no prospect of default for the next couple of years.

In years to come, after the Republic of Ireland has slid out of the list of rich Western countries, people will look back on these times and identify both the bank guarantee and the ECB-led financing as key events in the impoverishment of Ireland and the main decisions that made sovereign default/restructuring inevitable.

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