Ireland Looses Triple A Rating

On March 30, 2009, Standard & Poor’s Ratings Services lowered its long-term sovereign credit rating on the Republic of Ireland to ‘AA+’ from ‘AAA.’ At the same time, the ‘A-1+’ short-term rating on the Republic was affirmed. The rating outlook is negative.

The negative outlook reflects the ongoing deterioration in the public finances along with our concerns about the medium-term growth prospects of the Irish economy. The ratings on Ireland could be lowered again if the public finances weaken substantially further than what we currently assume. The outlook could be revised to stable if the government embraces a fiscal strategy that contains the rise in the public debt burden in line with Ireland’s modest economic growth prospects.