July 19, 2010
This week is just getting started but it already looks like a good one to bear in mind next time you read that “European sovereign-debt concerns are receding,” or anything of that hopeful sort.
It will probably serve as another reminder that they can loom again as quickly as they seem to fade.
For Moody’s rating agency has taken a swipe at Ireland’s creditworthiness. Citing the usual suspects of rising debt, anemic growth and the cost of propping up wheezing banks, it cut the troubled nation’s sovereign-bond ratings down a notch, to Aa2 from Aa1.
Then again, Moody’s news came after the International Monetary Fund and European Union walked out of weekend talks with Hungary. They were unwilling to let Budapest have the higher debt/GDP targets it now wants.
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