Ireland's Sovereign Debt Rating Cut by Moody's

Moody's Investment Service cut Ireland's sovereign debt rating by two places on Friday, citing a bleak economic outlook and ongoing European fiscal problems. "Should the intended fiscal consolidation goals not be met, a further rating downgrade would likely follow," Moody's said. "Moreover, a further deterioration in the country's economic outlook would also exert downward pressure on the rating." According to a Reuters report, "The move sent Ireland's borrowing costs up and cut short a rare spell of good news after the government said on Thursday it had passed a review of its economic progress by creditors and ratings agency Fitch upgraded its outlook." Elsewhere on Friday, it was announced that Greece may have to restructure its massive debt to remain functionally operational. A Moody's official - Dietmar Hornung - told Reuters, however, that the probability of Ireland having to restructure any of its debt was remote and he expected Dublin's debt-to-GDP ratio to level off at a "sustainable" 120%. The International Monetary Fund and European Union bailed out Ireland to the tune of 85 billion euros last year.