http://www.bloomberg.com/news/2011-06-08/ecb-s-rulebook-puts-ireland-in-same-risk-category-as-germany.html
The Frankfurt-based ECB charges lenders putting Irish debt up as collateral in money-market operations the same premium as it does banks submitting benchmark German bonds, the central bank’s website shows. That’s because ECB lending conditions are based on the recommendations of four rating companies and one of them, Toronto-based DBRS Inc., puts Irish debt in the top class of collateral.
“Ireland’s fundamentals are in line with an A rating,”Fergus McCormick, head of sovereign ratings at DBRS, said in a telephone interview. “It’s one of the most open and flexible economies. You have to take that into account when you want to arrive at a balanced and fair opinion.”
Ireland’s economy may return to growth in 2011 and expand at more than double this year’s speed in 2012 as companies step up hiring and spending, the European Commission said last month.
The Frankfurt-based ECB charges lenders putting Irish debt up as collateral in money-market operations the same premium as it does banks submitting benchmark German bonds, the central bank’s website shows. That’s because ECB lending conditions are based on the recommendations of four rating companies and one of them, Toronto-based DBRS Inc., puts Irish debt in the top class of collateral.
“Ireland’s fundamentals are in line with an A rating,”Fergus McCormick, head of sovereign ratings at DBRS, said in a telephone interview. “It’s one of the most open and flexible economies. You have to take that into account when you want to arrive at a balanced and fair opinion.”
Ireland’s economy may return to growth in 2011 and expand at more than double this year’s speed in 2012 as companies step up hiring and spending, the European Commission said last month.
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