Moody's cuts Ireland rating to 'junk'

Ratings agency Moody's has cut the Republic of Ireland's debt rating to junk status.

Ireland joins Portugal and Greece as the third euro-area nation to have its rating reduced to below investment grade. Moody's Investors Service said its decision to cut Ireland to Ba1 from Baa3 was based on the "growing possibility" it would need a second bailout before it can return to capital markets. Ireland was forced to seek an €85bn rescue in November last year, as the European banking crisis overwhelmed the government's austerity efforts. The outlook remains "negative," Moody's said in a statement yesterday, suggesting further downgrades are possible. According to reports...