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Moody's has cut Ireland's credit rating, warning the country faces a slow climb out of recession as the cost of a banking rescue package mounts.
The credit rating agency's downgrade came a day ahead of a scheduled sale of up to 1 and half a billion euros in Irish debt. The news weakened the euro versus the dollar, and hit European Stocks. But Moody's also changed the outlook for the Irish government from negative to stable, because it views the risks as being evenly balanced.
Analysts say the one-notch downgrade will add to the premium needed to raise money.
- Ireland's economy in recovery 2010-07-02