Ireland’s government is facing mounting pressure to put a final price on the cost of bailing out its banks.
That comes after Standard & Poor’s cut the country’s credit rating, pushing its borrowing costs higher.
Fears of a substantially higher bill for supporting the banking sector led to Ireland’s long-term rating being cut by one notch to ‘AA-’ with a negative outlook, meaning another cut is more likely in the future.
Dublin hit back, saying S&P’s analysis was “flawed” because it was based on an extreme estimate of bank recapitalisation at up to 50 billion euros.
John Corrigan, the chief executive of the National Treasury Management Agency said: “Exceptionally, we have taken issue with the rating agency. It’s something we don’t like to do but there comes a point when the analysis is not robust.”