RATING AGENCIES 'UNFAIR' TO IRELAND - The 'bed and breakfasting' of deposits, bank recapitalisations, a nationalisation, the 'warehousing' of loans, a government guarantee scheme, and high-profile resignations are all being watched and noted abroad, affecting our international standing.
Then there is the economy, which is experiencing a high-profile fall from grace, with the European Commission saying recently that we have the second worst performing economy in Europe. This too is affecting our credibility, and our ratings at agencies such as Moody's, which has relegated Ireland to the lowest level of the top tier of its overall ratings. Germany is in the top tier, the US and UK in the middle tier, Ireland is in the bottom tier.
Paul de Grauwe, Professor of Economics at University of Leuven, said lower ratings mean that the Irish Government may have to pay higher costs when it borrows. But he feels the rating agencies are being unfair to Ireland. He argues that these agencies previously gave almost everybody good ratings, and underestimated risks, but were now going to the other extreme.
Asked about Irish banks, Professor de Grauwe said there was a feeling in Europe that the recapitalisation of AIB and Bank of Ireland may not be enough and nationalisation may be needed eventually.
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NEWS AND CURRENCIES - Drinks group Pernod Ricard, which owns Irish Distillers, has said sales of Jameson rose by 14% in the six months to the end of December. This was one of the strongest performances of all the group's brands. Overall, Pernod Ricard's net profits rose by 5% from a year earlier to €615m.
On the currency markets, the euro is worth $1.2912 and 89.91p.
