Monday, July 19, 2010

Moody's Downgrades Ireland

by Bill McBride on 7/19/2010 08:33:00 AM

From Matthew Saltmarsh at the NY Times: Moody’s Cuts Ireland’s Credit Rating

Moody’s Investors Service downgraded Ireland one notch, to Aa2 from Aa1 ... Moody’s also changed the outlook on the ratings to stable from negative.

“Today’s downgrade is primarily driven by the Irish government’s gradual but significant loss of financial strength, as reflected by its deteriorating debt affordability,” said Dietmar Hornung, a senior credit officer at Moody’s.
And from the WSJ: Spanish Bad Bank Debt Rises
Bad debt held by Spanish banks topped €100 billion ($129 billion) for the first time in May, as more companies filed for bankruptcy and unemployment continued to rise amid the economic downturn.
On Friday, the Committee of European Banking Supervisors (CEBS) will release the stress test results for 91 European Banks.

This ties in with the Sovereign debt series too!