S&P cuts Republic of Ireland OTLK from stable to negative
Posted by WARREN MOSLER on January 9th, 2009
Thanks!
The ratings agencies could be the catalyst that destabilizes finance for the eurozone national governments, driving up spreads, rates, and ultimately, the ability limiting their ability to fund at any cost.
Downgrades can also do the same for banks in the eurozone.
This would come as a surprise as downgrades of Japan, for example, didn’t alter their ability to issue JGBs as if they were still AAA.
Meanwhile, eurozone economic performance seems to be worsening by the day, as the lack of aggregate demand takes its toll.
>
> On Fri, Jan 9, 2009 at 7:30 AM, Dave wrote:
>
> One bit of news explaining why there 3yr bond
> came at L+90 when Austria also a AAA rating
> came at L+15
>
> DV
>
*S&P CUTS REPUBLIC OF IRELAND OTLK FROM STABLE TO NEGATIVE
*S&P CUTS REPUBLIC OF IRELAND OTLK FROM STABLE TO NEGATIVE
*S&P: IRELAND OTLK TO NEG ON CONCERNS ABOUT PUBLIC FINANCES
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