- Progress on banking union rather slow.
- Irish face pretty mixed picture.
- The negative ratings outlook reflects the implementation risks to the country's deficit-reduction plan, particularly in light of the continued weakness in the Irish economy. Moreover, the broader Euro-area debt crisis complicates the government's fiscal consolidation efforts.
However Moody's is dropping one of the main factors that justified Ireland's downgrade to below investment grade. According to UBS this could signal that Moody's is getting closer to an upgrade if Ireland shows that it is able to regain market access, as an extension of the existing plan would not be needed and fiscal and macroeconomic adjustments are under way.
Print 09:40, 14 Nov 2012 - Rating Agency comments - Source: Newswires
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