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New jitters over debt

THE yield on Irish sovereign debt swelled to a record high yesterday as markets became nervous after a downgrade of Greece's credit rating by Moody's.

The credit ratings agency moved to allay fears that a further downgrade of Irish sovereign debt was on the cards.

But Moody's said it was "monitoring" the attempts of incoming Taoiseach Enda Kenny to seek better repayment terms on our €85bn financial rescue agreement with the EU and IMF.

Credit analyst with Moody's, Dietmar Hornung, said he didn't expect the broad framework to be changed.

"Certainly from an Ireland perspective, if there were changes to the interest rate, that could reduce the debt burden somewhat."