Portugal’s junk status gives Ireland jitters

Published on 7 July 2011 at 10:33


“Portugal downgrade raises fresh concerns over Ireland,” headlines the Irish Times, after credit rating agency Moody’s consigned Portuguese sovereign debt to junk status on 6 July. Following a day of market turmoil in the wake of the downgrade, the notional cost of Irish borrowing has hit new levels, with two-year Irish bond yields rising to 15.30% and 10-year yields to 12.43%. For cash strapped Ireland, forced to quit the bond markets after the €85 billion EU/IMF bailout of 2010, the downgrade makes its mooted return to trading by 2013 all the more difficult. “Although Moody’s insisted last night that it continues to “differentiate significantly” between the weakest euro zone countries, analysts in Dublin said Ireland was likely to be to next see its sovereign debt rating downgraded to junk status.”

Was this article useful? If so we are delighted! It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans. Discover our membership offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic