Ireland, Portugal market-implied ratings take a tumble

Discussion in 'Wall St. News' started by ASusilovic, Sep 27, 2010.

  1. Ireland and Portugal’s ratings fell a notch last week — at least, according to bond markets. Credit rating agency Moody’s says the bond market-implied ratings of both countries fell from Baa3 to Ba1. Ireland’s CDS-implied ratings also dropped a notch, from Ba3 to B1, though Portugal’s held steady at Ba3. For reference, the countries are currently rated Aa2 and A1 by Moody’s, respectively.


    So, an eventful week all ’round for Europe’s peripheral sovereign debt market. Ireland raised €1.5bn in debt markets last week — albeit in exchange for much higher yields and on uncertain auction mechanics. Portugal raised €750m in bonds, less than it had hoped and at higher yields. The ‘good’ news is that Spain — that other European hotspot — appears to have slipped from the market’s (wrathful) focus, while also selling debt last week.

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