DUBLIN (Reuters) - Ratings agency Moody’s said the chances of Ireland having to restructure any of its debt are very remote after it cut the euro zone struggler’s sovereign rating by two notches to the verge of junk status on Friday.
Moody’s downgraded Ireland’s sovereign rating to BAA3 from BAA1, a day after Germany said for the first time that Greece may have to restructure its huge public debt, sending market yields for its debt to new highs.
“We don’t see that as a plausible scenario. Restructuring from an investment grade rating is a remote scenario. Very remote,” Dietmar Hornung, vice president and senior credit officer at Moody‘s, told Reuters in an interview.
“Obviously debt dynamics are not favorable at the moment but we assess that as being sustainable. There are challenges though, that’s why we went for a rating action today.”
The cut in the rating means that Moody’s rates Ireland two notches below the other two major rating agencies, Fitch and Standard and Poor‘s.
Reporting by Padraic Halpin; editing by Patrick Graham