Moody's, the international credit ratings agency, has today downgraded Ireland from Aa1 rating to Aa2 but the National Treasury Management Agency is relatively unconcerned. The change brings Moody's into line with the other agencies and is not based on new data but on the level of the country's indebtedness, which is already well understood by those who need to know.

On a more positive note Moody's has also adjusted its outlook for Ireland from negative to stable.

FDI on the increase

The Irish Business and Employers' Confederation issued a report today which claims that Ireland is again a favoured nation in attracting foreign direct investment. The report, "Ireland, A Place To Do Business", notes, however, that action is needed to boost the domestic economy and suggests a carefully focused public capital investment programme.  IBEC is also advising the Government that any new taxes introduced should boost consumer confidence and encourage a return to normal spending patterns.

Court challenge to NAMA

Property developer Paddy McKillen has launched a court challenge against the National Asset Management Agency, claiming that it is acting unconstitutionally. It is Mr McKillen's contention that, as he is in a position to meet the repayments on his loans of €80m, they should remain with the bank which advanced the money. Moving the loans to NAMA, he argues, will have a negative impact on his business and property rights.

Today lawyers for NAMA and the State were in the Commercial Court asking for an urgent hearing of the case on the basis that the legal action poses a real threat to the effectiveness of NAMA. Justice Peter Kelly accepted that the case was one of "very considerable urgency" but then set October 12 as the date for the hearing.

Man arrested after Mullingar incidents

Two houses and a car were badly damaged in Mullingar yesterday in what appears to be a further episode in an ongoing feud between two families of settled Travellers. All the windows in a house near the local GAA stadium were smashed by a gang in full view of spectators on their way to a game. That appears to have followed an earlier incident in another part of the Co. Westmeath town.

Australian drowning victim named

The Irishman who drowned while swimming in a billabong in Kakadu National Park in Australia's Northern Territory has been named as Tony Norney (27), from the Poleglass area of Belfast.

Today's Papers

Variety is the key in this morning's headlines. The Irish Times stays with the economy under the headline "Government meeting to discuss how to cut €3bn from budget"; the Irish Examiner reports on the ban in May of substances sold in head shops with "Gardaí seize 4.5 tonnes of ‘legal highs'"; and the Irish Independent has "L-drivers face tougher training to get licence" over a report of much more stringent conditions to be introduced for the granting of a full driving licence.

The Irish News carries a photograph of a victorious Brian Dooher, captain of the Tyrone football team, but its headline continues a story about political representatives failing to appear in Parliament; the headline reads "Missing MLAs named".

The Weather in Galway

The sun is shining intermittently but the rain is not far away. Temperature 18C.

---

Using the buttons below you can save this article to your favourite social bookmarking site