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Ireland under ratings pressure again

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Ireland under ratings pressure again

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Mixed news for Ireland from ratings agencies. Standard & Poor’s cut the country’s debt rating – again – but this time by just one notch to BBB+.

Rival agency Fitch was tougher. It warned of another downgrade from its current BBB+ on significant uncertainty over Ireland’s outlook for economic growth this year. It cited the cost of bailing out the country’s banks.

S&P was more positive on that issue giving a thumbs-up to Dublin’s latest moves to get its banks out of trouble

But economists are worried about Ireland’s ability to meet the cost of one of the world’s most expensive bank bailouts.

The Dublin government has pledged to recapitalise its financial system by 24 billion euros to draw a line under its banking crisis, but hopes it can keep the state’s part of that to around 17 billion euros.