Friday 23 March 2018

The damage to our credit rating must be undone

When ratings agencies can stifle the efforts of governments we must reassess who's in charge, says James Fitzsimons

Amid all the doom and gloom of the financial crisis, it is easy to forget that we are part of a larger economic union that gives us greater financial stability. If ratings agencies such as Moody's can trash our efforts based on subjective analysis, it's time to muzzle them. They failed to protect us from the global crisis in 2008. Why should we listen to them now?

They analyse statistics and make assumptions as if they had some insight into the future. Maybe they do, but it is only useful if the assumptions prove to be true. The financial crisis confirmed that nothing is certain. At best, we can only hope for a good guess.

Our Government could learn from this. In spite of all the austerity measures imposed on the Irish people, it was not enough for Moody's. Failure to burn the bondholders has affected our credit rating. The dogs in the street know that the economy is suffering.

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