Moody’s Investors Service on Monday cut Ireland’s credit rating to “Aa2,” two notches below the coveted “Aaa”-rating, on concerns over the island country’s national debt and uncertain growth prospects of its struggling economy. Ireland’s traditionally strong real estate and banking sectors suffered during the global economic downturn, which contributed to its government’s “gradual but significant loss of financial strength,” Moody’s said in a release.
Ireland’s ISEQ stock index slumped on Monday after the news, falling 0.4 percent and trailing all major European stock indices. As a result, Moody’s changed its outlook on Ireland from “negative” to “stable” on the ratings shift.
