Irish credit downgrade mystifies European Commission president

THE president of the European Commission has described the downgrading of Ireland's credit worthiness as "incomprehensible".

Jose Manuel Barroso praised Ireland's efforts to get back on its economic feet and dismissed the "junk" status declared on the country by Moody's credit rating agency as "questionable".

Last week Mr Barroso attacked the same agency - one of the "big three" agencies whose assessments can affect markets instantly.

After Moody's declared Portugal's credit status to be "junk" the president said the decision was unhelpful, and would only provoke more market speculation against the euro, adding: "I think our institutions know Portugal a little bit better: our analysis is more refined and complete."

Mr Barroso's remarks yesterday renewed pressure for a European credit rating agency, and follow Irish government attacks on Moody's for an "unjustified" decision. But prime minister Enda Kenny said Moody's action was linked to the way EU leaders were dealing with the eurozone crisis.