Moody’s Cut Spain’s Last AAA Rating ; Ireland Bank Rescue Price Tag At USD 68 Billion

Moody’s lowered Spain to Aa1 from Aaa with a stable outlook. This was widely expected, Spain bond spreads narrowed. Bloomberg story: Spain’s Credit Rating Cut One Level to Aa1 by Moody’s.

Ireland bank rescue price tag was estimated at USD 68 billion or 32% of Ireland’s GDP. Bloomberg story: Ireland Faces $68 Billion Bank Rescue to Prop Up Allied, Anglo.

For Anglo Irish the additional funds needed estimate is at the low end of my yesterdays guess – at USD 11.4 billon ( USD 6.4 billion base case + USD 6.4 billion unexpected losses).

Spreads eased a bit as numbers seem realistic.

Ireland debt burden doesn’t seem manageable, but that is a theme for the future….


This entry was posted on Thursday, September 30th, 2010 at 5:56 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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