Moody's slashes Ireland's credit rating

Moody's has slashed Ireland's credit rating, and warns more downgrades are set to follow.

The agency has cut Ireland's rating by five gradations from Aa2 to Baa1, despite the International Monetary Fund approving a €22.5bn three-year loan for the Republic yesterday as an initial contribution of its €85bn bailout. Moody's said the €15bn in spending cuts imposed as a condition of receiving the rescue package meant the Republic's economic prospects were uncertain, with the predicted decline in domestic demand likely to hit the country's prospects of recovery. "Should Ireland's adjustment capacity prove to be insufficient to stabilise debt metrics in the foreseeable future, a ...