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.

    [​IMG]

    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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    http://ftalphaville.ft.com/blog/201...plied-ratings-take-a-tumble/?updatedcontent=1