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Moody's Investors Service slashed Ireland's credit rating by five notches to Baa1 with a negative outlook from Aa2 Friday and warned further downgrades could follow if Ireland was unable to stabilize its debt situation.

Ireland's debt levels have quadrupled since late 2007 on the back of a banking sector meltdown, and it needs solid economic growth to ensure it can meet repayments and fiscal targets set down in the 85 billion euros EU/IMF bailout agreed last month.

Moody's downgrade followed Fitch's move last week to become the first ratings agency to strip Ireland of its 'A' credit status, cutting it by three notches to BBB+ following the debt-stricken government's request for an EU/IMF bailout.

S&P is the only ratings agency that still has Ireland in the top band but that may not last long as it has its A rating on review for a possible downgrade.
http://news.yahoo.com/s/nm/20101217/bs_nm/us_ireland_moodys