The European Union's executive criticized Moody's act of downgrading the Irish credit rating to junk describing it as incomprehensible and called the announcement's time questionable.
EU Commission PresidentJose Manuel Barroso spokeswoman told the journalists that Yesterday's decision by Moody's to downgrade Ireland's credit rating is, in the president's view, incomprehensible and, in the Commission's view, its timing, as the second quarterly review mission is preparing to announce its findings, is, to say the least, questionable.
Moreover, the Irish Finance Ministry said that Moody's act of downgrading the Irish credit rating to junk is disappointing and differs from other rating agencies.
The ministry said in a statement that It is important to point out that Ireland's rating with all of the other major agencies - such as Standard & Poor's, Fitch and DBRS- remains within the investment-grade band, adding that We are doing all that we can to put our house in order and the progress that we are making is there for all to see.
Moody's downgraded Ireland's credit rating to Ba1, despite S&P's and Fitch rating for Ireland at BBB+ or at least above junk.
The agency doesn't reflect the finance chief's agreement on Monday to cut the cost of borrowing on bailout funds and extending the maturity, as the statement said.