Moody’s Slashes Ireland’s Credit Rating an Eye-Popping FIVE Levels

Moody’s (NYSE:MCO) slashed Ireland’s (NYSE:EIRL)¬†credit rating five levels from Aa2 to Baa1. Moody’s said the ratings cuts will continue so long as Ireland’s debt issues do not stabalize.

First, why did Moody’s wait so long to downgrade? They should have been bringing the credit rating down one notch at a time as the crisis unfolded.

This is another reason why credit ratings agencies including Fitch and Standard & Poor’s (NYSE:MHP) have lost a tremendous amount of efficacy. (See “Rated XXX: Are Rating Agencies Downgrades Legit or Controversial?“)

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