MOODY'S LOWERS IRISH DEBT RATING - The international ratings agency Moody's has just downgraded the country. As far as Moody's is concerned, we have spent the last 13 months on AA1 with a negative outlook. This morning that has moved to Aa2, but the outlook is more stable.
Moody's is playing catch-up with the other ratings agencies - Standard & Poor's and Fitch - which have both already made this decision. It is leaving us in a slightly better position than Standard & Poor's did in April. S&P has Ireland on a negative outlook.
Oliver Whelan of the National Treasury Management Agency is on the line said he did not expect the move to have any significant effect on the cost of Ireland's borrowing.
***
PRIZE BOND FUND PASSES BILLION MARK - Those who are not caught up with trying to get from week to week on higher mortgage costs and reduced salaries appear to be ploughing money into savings.
Figures this morning from the Prize Bond Company show that net sales of prize bonds - new sales minus the cashing in of existing bonds - increased by 53% to €269m last year.
The company's fund, at the end of last year, exceeded €1 billion for the first time, up 33% on the previous year. That sales momentum, driven by a the introduction of a monthly €1m prize, has kept going into 2010 with net sales this year pushing the current value of the fund to €1.2 billion.
Prize Bond Company chairman Michael O'Keeffe put the record results down to the security of the prize bond product. Mr O'Keeffe said the product was unique as prize bond holders were in every draw. He rejected a suggestion that the prize fund was 'measly', saying it would rise to €30m this year.
