Moody’s downgrades Ireland rating, outlook stable

Ratings agency Moody's said on Monday it had downgraded Ireland's sovereign bond ratings rating to Aa2 from Aa1 with a stable outlook.

"Today's downgrade is primarily driven by the Irish government's gradual but significant loss of financial strength, as reflected by its deteriorating debt affordability," Dietmar Hornung, Moody's Senior Credit Officer and lead analyst for Ireland, said in a statement.

Moody's said it expects Irish economic growth to be below its historical trend over the next three to five years. It said banking and real estate — engines of growth in the years preceding the country's crisis — would not contribute meaningfully to overall growth in the coming years.