Credit rating agency Moody’s has downgraded Ireland’s government bond ratings from Aa2 to Aa1. Why? Basically a mixture of debt and weakening financial prospects.

Ireland’s debt-to-GDP ratio began at 25% prior to the recession and was at 64% by the end of 2009, according to the press release. The ratio continues to climb as the recession continues to drag on. The credit agency expects government debt to stabilize at 95-100% of GDP within the next few years.

Meanwhile, Moody’s sees a weakened prospect for financial growth in Ireland’s near future.

European and Asian markets were already off, with the FTSE down 52 points or 1% and the Nikkei 225 off 275 points or 2.8%. None of which bodes well for today’s upcoming session on Wall Street.