By Daniel James Hayden IV
Moody's Investors Service downgraded Ireland's credit rating two notches to Baa3 from Baa1 on Friday and said that the outlook for the financially troubled country remains negative.
Moody's said that the key factors of its downgrade of Irish debt were the decline of the government's financial strength, the country's weakening economic growth prospects and uncertainty caused by the solvency test required by the European Stabilization Mechanism (ESM) for the provision of future liquidity support.
According to Moody's, the negative outlook for Ireland is based on its view that the Irish government's financial strength will further deteriorate if economic growth is weaker than current projections or if fiscal adjustment falls short of the government's consolidation path.
The rating agency said that in a related move it also downgraded Ireland's National Asset Management Agency, whose debt is guaranteed by the Irish government, to Baa3 from Baa1 with
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