Moody's downgrades Ireland to "junk"

SAN FRANCISCO (MarketWatch) -- Moody's Investors Service on Tuesday lowered Ireland's foreign- and local-currency government bond ratings by one notch to non-investment grade of Ba1 from Baa3. "The main driver of today's downgrade is the growing likelihood that participation of existing investors may be required as a pre-condition for any future rounds of official financing, should Ireland be unable to borrow at sustainable rates in the capital markets after the end of the current E.U./IMF support programme at year-end 2013," said Moody's in a statement. The outlook on Ireland's ratings remain negative.

www.marketwatch.com...

S&F!

This is pretty bad news for Ireland and is going to set the stage for another "Greece" like fallout.

Those fighting Irish might not play as nicely when austerity measures are proposed.

I wonder what this is going to do to the US markets tomorrow? I bet they are already reacting...

Will be keeping a close eye on this one.

~Namaste

Debt to GDP in Ireland is over 1100 % so this is no surprise. Maybe Ireland will organize a default like Argentina did before Greece?