credit rating

Ireland’s credit rating was cut by Moody’s to junk this week. The ratings agency warned that the country would need a second round of bailout.

Ireland’s downgrade comes a week after Moody’s lowered the rating for Portugal to junk status with a similar advice to get a second bailout. The credit rating agency sees that private investors need to share the pain of helping sinking European nations.

Standard & Poor’s rating agency has cut Japan’s long-term sovereign debt rating today for the first time within 8 years since 2002 explaining that the country's government lacked a coherent plan to tackle its mounting debt.

The rating for the largest Asian economy was downgraded to AA-, three levels below the highest possible rating, which serves as a warning sign for other developed nations such as those in Europe and the United States, of the growing concerns about the debt built up during the global financial crisis.

According to Associated Press, the dollar notched fresh multimonth lows against the euro, pound and yen as a warning that Britain's debt level may result in its credit rating being cut ricocheted into worries about the massive U.S. deficit. The 16-nation euro rose to $1.4015 in morning trading from $1.3889 in New York late Thursday — its first time above $1.40 since Jan. 2.