They're never happy, these ratings agencies, are they. They threaten you with a credit down grade if you don't slash public spending. And when you do,
this happens:
Ireland's credit rating has been slashed by five notches by Moody's, which also warned that the country faced an increasingly uncertain economic future.
Moody's said that the cost of rescuing Ireland's banking sector meant Irish debt was now significantly riskier. It also expressed concern that the deep austerity cuts due over the next four years will hurt domestic demand. The agency maintained a "negative" outlook on Ireland, and said that further downgrades are possible in the future. (1)
Do what they say, or they'll downgrade you. Do as they say, and they downgrade you. Seems to me, if they ain't got you one way ...
1 - "Ireland's credit rating slashed five notches," by Graeme Wearden. Published in The Guardian, 17th of December, 2010. (http://www.blogger.com/post-create.g?blogID=507659435767768133)
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