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Moody's cuts Ireland's rating to junk

Moody's cuts Ireland's rating to junk

Moody's Investors Service says it has downgraded Ireland's government bond ratings to junk because of a growing risk the highly indebted country will need a second bailout in which private investors will be hurt.
The rating agency cut Ireland's rating by one notch to Ba1 from Baa3 and kept a negative outlook. The downgrade follows a similar move on Portugal's debt last week.
The European Commission, the EU's executive that oversees Ireland's exiting bailout, immediately criticized the downgrade, saying "it contrasts very much with the recent data, which support a return to GDP growth this year, and the determined implementation of the (bailout) program by the Irish government."
The downgrade comes as concern over the eurozone debt crisis reached a new high this week.