Central Bank and Financial Services Authority of Ireland headquarters, DublinLast year, we learned what happens when a small island in Europe filled with people who talk funny bets the farm on the financial services industry. Are the Irish next?
Lovely emerald Eire, the European economic miracle of the last few decades, has run into some hard times. GDP is down almost 10% this year, while the country’s debt is projected to soar by the end of next year to actually exceed GDP. And now, the indignity of a credit rating cut.
Never averse to kicking when the opponent is down, Fitch Ratings has slashed Ireland’s creditworthiness by two whole grades, to double-A-minus, whatever the hell that means. The other two ratings agencies may join in beating a dead Celtic Tiger, as both Moody’s Investors Service and Standard & Poor’s have a negative outlook on Ireland.
Ireland lost its coveted triple-A rating in April.
“As recently as the end of 2007, gross government debt was just 25% of GDP,” Fitch explained. “The rise in debt is likely to push the ratio of debt interest payments to revenue above 15%, one of the highest among Fitch-rated sovereigns in the ‘AA’ range, reducing fiscal flexibility.”
Is Ireland going the way of Iceland? Will Dublin be little more than a smoldering mass of ruins and a shantytown by Christmas? Will a weird pixie singer account for three-quarters of its GDP next year? Not exactly, Fitch (disappointingly?) says.
Despite kicking the country in the groin, Fitch says Ireland’s outlook is stable. In particular, unlike Iceland, whose banking industry went into freefall, Ireland’s is likely to be saved.
“The agency notes the vigor of the government’s fiscal consolidation response to date, the expectation of further aggressive budget tightening and the likely success of the National Asset Management Agency in rehabilitating the banking sector,” Fitch director Chris Pryce said.
Fitch downgrades Irish credit rating for second time [MarketWatch]
Ireland says Fitch cut shows need to slash deficit [Reuters]
“Islands that suck.” Nice.
shazamwow!
O’Shazanus
Greg
I’m going to rig your electricity to circumvent the meter. After a few months paying estimated bills, you will be delighted to get the adjustment to actual. But there is a very high chance you will also get caught and fined for stealing electricity.
Not Jeff Macke but a fan of his work
“smoldering mass of ruins and a shantytown” would be an improvement
Filet ‘O Oops!
http://news.bbc.co.uk/2/hi/8327185.stm
“a small island in Europe filled with people who talk funny”
f uck you you english pantywaste
Well no wonder. That’s the worst pic of a petrol station canopy structure I have ever seen. Ever heard of “architects”, Iceland, wot?
~BP Retail Petrol Rep
This was very good. However, I will still miss the vitriol directed at Greg and the masochistic pleasure of trying to untangle his sentences.
@9
Yeah it wasn’t too shabby at all. Witty tags and pics. I think the whole “__________ that suck” tag meme could work for a while.
Maybe they could launch a guinness/puke/john player special etf?
Texas is coming out w/ a fake tits/loud ass morAn one:
http://seekingalpha.com/article/171122-ook-advisors-to-launch-texas-etf-today?source=hp_wc
AA- means that their credit is sligtly worse than AA, somewhat worse than AA+, and noticeably worse than AAA. However, it is better than A+, and far better than BBB.
We will forward a copy of our Guides to Ratings report for future reference.
- Managing Director and Chief Quality Assuarnce Manger, Flitch Ratings and Research Service.
@11, you’re going to lose credibility denigrating fake tits like that
You are all NERDS!
I wish Bess had kept Greg, but instead of posting his awful real stories he’d just post stupid shit and commenters would dismantle him. Day after day.
The upside is the market will soon be flooded with eastern european slores who no longer have jobs as domestics/sales clerks. Pickins should be good.
You got to figure Aliens built that shit.
Jon
You limey douchebag
Greg’s Mom
ST. SHAZANUS
I’ll drink to that
Have you ever been in an Irishman’s Shazanty, where the water is scarce and the whiskey is plenty….
the picture caption is a nice touch
I prefer eccentric.
-Björk
What were Ireland’s rating in the ’40′s, ’50′s and ’60′s.
What were Ireland’s ratings in the ’40′s, ’50′s and ’60′s.
commercial tie-in with boondock saint 2: all saints day?
@24 – I believe they used some sort of potato based ranking system at that time.
I’m moving over to the Motley Fool to do serious business journalism, you won’t have me to kick around anymore
Greg
Ireland’s treasury sec announces fiscal stimulus package:
http://www.chainleader.com/articles/blog/180000418/20090507/leprechaun-gold-inverted.jpg