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Ireland Stress Test Bank Positive, Sovereign negative: Moody's
The recent stress test of Ireland's banks will turn out to be positive for the Irish banks, but negative for the sovereign, ratings agency Moody's Investor Services said Monday. Writing in their weekly Credit Outlook, Moody's said: "The capital increase is a clear credit positive for the banks. However, the additional recapitalisation costs that arise to the government in connection with the PCAR are credit negative for Ireland's sovereign creditworthiness (Baa1 negative)."