Standard and Poor's Lowers Ireland Rating on Bank Bailout Costs

Standard & Poor's cut its credit ratings for Ireland on Tuesday, saying that the cost of supporting the country's ailing banking sector has risen.

S&P lowered its long-term rating one notch to AA-minus, the fourth-highest investment grade, Reuters reported. The outlook on the rating is negative.

The rating agency said Ireland would need to spend €90 billion ($114 billion) to support the banking sector, compared with its previous estimate of €80 billion.

Earlier this month, Anglo Irish Bank won approval for a new bailout worth as much as €10 billion, more than expected.

"As the true cost of Ireland's bank bailout become clearer, there is greater concern internationally that it may affect the government's bigger worry: its huge fiscal deficit," Ronan Lyons, an independent economic analyst in Dublin, told DailyFinance.

Read Full Story

Markets

DJIA 25,090.48 -84.83 -0.34%
NASDAQ 7,746.38 -14.66 -0.19%
NIKKEI 225 22,851.75 113.14 0.50%
HANG SENG 30,309.49 -130.68 -0.43%
DAX 13,010.55 -96.55 -0.74%
USD (per EUR) 1.16 0.00 -0.15%
USD (per CHF) 1.00 0.00 -0.04%
JPY (per USD) 110.68 0.03 0.02%
GBP (per USD) 1.33 0.00 0.01%