Irish government ministers and economic leaders have deliberately taken the unusual step of publicly criticising the move to downgrade Ireland's credit rating.
National Treasury Management Agency (NTMA) chief executive John Corrigan condemned the actions of Standard and Poor's (S&P) to downgrade the rating from AA to AA- as "flawed".
He alleged that it was based on extreme conclusions that did not put any value on National Asset Management Agency (NAMA) assets. He also accused their debt calculations of not being in accordance with IMF or EU practices.
S&P responded to the criticism by highlighting that the rating was still "very strong". The ratings agency also, however, maintained its "negative watch" on the State indicating that it may look to downgrade Irish government debt in the future.
"The negative outlook reflects our view that the rate could be lowered again," a representative confirmed.
Some financial analysts have deemed the government's attack tactic as ill-advised, however, with one commentator saying, “It is very difficult and probably unwise to fight the market.”
In a positive move, however, Ireland was able to auction off €600 million in treasury bills on Thursday, selling at the top of its target range and at lower cost than two weeks ago. It proved the country is still able to be selective in its fundraising in difficult markets, and has already funded nearly all of its 2010 requirements.
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