THE INTERNATIONAL credit rating agency Standard & Poor’s has written to Minister for Finance Brian Lenihan to apologise for apparently suggesting that a change of government was needed to restore Ireland’s credit worthiness.
Earlier this week, the agency downgraded Ireland’s debt rating with one of the company’s analysts, Frank Gill, saying that “new faces” were needed in Government to deal with crisis in the public finances.
The managing director of Standard & Poor’s, David Bears, has now written to Mr Lenihan, to clarify the position. “I was distressed to learn that the comments by one of our analysts, Frank Gill, on Irish radio earlier this week were thought to imply that SP takes a position about the composition of the Government of the Republic of Ireland.
“On behalf of Standard & Poor’s, I can assure you that this is not the case,” the letter said.
“We take a strictly neutral stance on the policies of the 125 sovereign governments for which we have credit ratings and, accordingly, I can assure you that such considerations played no part in our recent decision to lower the credit rating of the Republic of Ireland to AA+ and AAA.
“Our analysis of government policies is solely for the purpose of making an independent judgement of sovereign creditworthiness,” the letter continued.
“Standard & Poor’s greatly values the open dialogue we have developed with you and your colleagues at the Department and NTMA over many years.
“Frank Gill and I regret any misunderstanding arising from his comments in the interview, and we will make every effort to ensure that S&P views on Ireland’s credit standings do no give rise to any misunderstanding going forward,” Mr Bears concluded.