While market has been chasing up lately, investors should pay special attention to the tumble of market-implied ratings of Ireland and Portugal.
Says Moody’s
Second, despite much protest to the contrary, market rumors of both Ireland and Portugal having to access the IMF or at least the [European Financial Stability Facility] EFSF refuse to go away. If this were to prove true, even if creditors were made whole, they would become junior. This may, rightly or unnecessarily, be spooking the markets and therefore widening spreads.
Source: Financial Times