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Fitch cuts Ireland's credit rating

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Fitch cuts Ireland's credit rating

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Ireland’s credit rating has been cut to A- from AA+ by Fitch which put its rating on a negative outlook because of the huge cost of cleaning up Ireland’s banks.

At the same time Ireland’s Financial Regulator warned levels of bad property loans there could be worse than already disclosed.

Fitch’s move – and a downgrade warning from rival rating agency Moody’s – pushed up the cost of borrowing for the Dublin government.

The fragility of Ireland’s economic recovery and the scale of the mess at its banks has spooked lenders and it now costs Ireland almost three times as much to borrow as Germany.

Adding to Ireland problems, a new survey found consumer sentiment plummeted in September.

The enormity of the country’s bank bailout and fear of more budgetary pain ahead panicked some people into pulling back on spending.