Credit rating agency Moody's has warned Ireland might need a second bailout.

The agency said it expected Ireland would face challenges regaining market access in 2013 and will likely need to rely on the European Stability Mechanism, at least partially, when the current support programme expires.

The current European Union/International Monetary Fund loan programme is due to run out at the end of 2013.

The Government has continually expressed its intention to borrow from the financial markets instead of seeking a second bailout.

The agency also cut Greece's sovereign debt rating to the lowest possible level after the debt-restructuring deal that imposes hefty economic losses for private creditors.

Moody's lowered Greece's local and foreign-currency bond ratings a notch to C from Ca, becoming the third credit rating agency to downgrade the country following the announcement of the swap deal to lighten its debt burden.

Moody's said that bonds rated C "are the lowest rated class and are typically in default, with little prospect for recovery of principal or interest".

The rating agency added that it did not assign any future outlook.