+ moody's downgrades ireland's rating to aa2, sa - Irish Bank ...

At the Aa2 rating level, the upside and downside risks are evenlybalanced. "If the GDP growth trend were to exceed Moody's expectations-- with a quick resumption of domestic credit flow and a supportiveglobal economic environment -- then the government's debt metrics couldstabilize earlier than is currently being assumed," says Mr. Hornung.On the other hand, Moody's notes that the country could experiencedownward rating pressure in the event of (i) a failure of the economytorebound in a meaningful way; and/or (ii) a severe deterioration in thecountry's debt metrics triggered by a further crystallization of bankcontingent liabilities beyond Moody's current expectations.For further information, please refer to Moody's Special Commententitled"Key Drivers of Ireland's Downgrade to Aa2," which is available onwww.moodys.com.PREVIOUS RATING ACTION & METHODOLOGYMoody's last rating action affecting Ireland was implemented on 2 July2009, when the rating agency downgraded Ireland's government bondratingsto Aa1 and assigned a negative outlook. Prior to that, Moody's lastrating action on Ireland was taken on 17 April 2009 when the ratingagency placed the government bond ratings on review for possibledowngrade.Moody's last rating action affecting NAMA was implemented on 16 June2010, when the rating agency assigned an initial rating of Aa1 with anegative outlook to the senior unsecured debt issued by NAMA, which isbacked by a full guarantee from the Irish government.The principal methodology used in rating the government of Ireland andNAMA is "Moody's Sovereign Bond Methodology", which was published in2008 and can be found at www.moodys.com in the Rating Methodologiessub-directory under the Research & Ratings tab. Other methodologies andfactors that may have been considered in the process of rating thisissuer can also be found in the Rating Methodologies sub-directory onMoody's website.New YorkBart OosterveldMD - CCO Pub, Proj & Infra FinSovereign Risk GroupMoody's Investors ServiceJOURNALISTS: 212-553-0376SUBSCRIBERS: 212-553-1653FrankfurtDietmar HornungVP - Senior Credit OfficerSovereign Risk GroupMoody's Deutschland GmbHJOURNALISTS: 44 20 7772 5456SUBSCRIBERS: 44 20 7772 5454