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THE RATINGS AGENCY Moody’s has welcomed the proposed sale of Irish State assets – deeming the programme to raise €3 billion in revenue as “credit positive”.
In its weekly credit outlook issued this morning, the agency said the concession of the EU and IMF to allow a third of the proceeds to be used for job creation was a sign of how Ireland was meeting all the targets set by the Troika.
“Ireland’s ability to proceed with the privatisation initiative also reflects its ability to adhere to the conditions of its EU-IMF financial assistance programme,” the agency said, “at a time when several European countries have delayed or shelved their privatisation plans owing to a lack of demand or political and social resistance.”
The welcome comes despite the fact that the agency gives both Bord Gais and the ESB credit ratings of ‘Baa3 negative’ – the lowest possible grade above ‘junk’ status – while neither Coillte nor Aer Lingus have any ratings at all.
Both the Baa3 ratings are higher than the rating enjoyed by Ireland, which has stood at Ba2 since last July – meaning Ireland itself is in ‘junk’ status.
Moody’s does acknowledge, however, that Ireland’s finances remain in a “challenging position”, with economic growth apparently expected to be 0.5 per cent in 2012 versus 1 per cent in 2011.
“Moreover, the sale of the state assets has implementation risks, among them the economic environment, regulatory restrictions and political resistance,” the agency said.
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That €3,000,000,000 is largely destined for anonymous bankers & speculators. Our government is a spineless joke.
matt this goverment are not a joke they are every bit as corrupt as the last goverment but i would add incompetent as well which is a deadly combination
A sure sign that this is very much a bad idea.
Can we rewrite the title of this article please ?
States assets to provide speculators with a nice earner says speculator authority.
Moodys – Advising governments to sell state assets, on the other hand advising private entities to buy them.
This stuff is right out of the USSR post collapse . Russian Oligarchs anyone ?
Ratings agencies should be discredited for the evil organisations that they are.
Aerlingus is not a state company – the state merely has a minority shareholding.
They would, it’s the usual Chicago school gangster capitalism.
have your say