Moody's downgrades Ireland debt to junk status

NEW YORK

The ratings agency cut Ireland's bond ratings to "Ba1" from "Baa3," and said Tuesday the outlook on the ratings remains negative.

Moody's credits Ireland with a strong commitment to fiscal consolidation, but notes that implementation risks remain significant with its weak economy.

The analysts say the EU may require private sector creditor participation as a precondition for such additional support, a negative for holders of distressed government debt.

Ireland's short-term issuer rating also was lowered by one notch to "Non-prime" from "Prime-3."

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