Fitch Downgrades Ireland

Before you go, we thought you'd like these...
Before you go close icon
A day after Moody's Investors Service announced it was putting Ireland under review for a possible downgrade, Fitch Ratings lowered the country's credit grade to A+ from AA-. Fitch's downgrade was prompted by the Irish government's announcement last week that it's pledging more money -- as much as €50 billion -- to save Ireland's banks. The downgrade was further fueled by uncertainty over the country's economic recovery.

"The downgrade of Ireland reflects the exceptional and greater-than-expected fiscal cost associated with the government's recapitalization of the Irish banks, especially Anglo Irish Bank," Fitch said in a statement.

Sponsored Links
Not only that, but Fitch also said it may downgrade Ireland further if the economy stagnates and the government can't find political support for budget cuts. Fitch's rating of Ireland is already the lowest among the major rating companies.

Moody's review, initiated Tuesday, was also prompted by Dublin's rising borrowing costs. These are set to climb further following Fitch's downgrade.

Ireland's move last week to save the nation's banks pushed the general government deficit to around 32% of GDP this year. Meanwhile, Bloomberg also reported that Irish consumer confidence last month plunged the most in over four years.
Read Full Story
Credit Card Compare

Credit Card Compare

Whether you're looking for great travel rewards or low annual fees, find the card that's right for you.

Compare Now

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

12 Facts That Will Make You Smarter Than Your Friends 12 Facts That Will Make You Smarter Than Your Friends
Nature Gets Revenge On Safari Hunter Who Killed Elephants And Lions For Sport Nature Gets Revenge On Safari Hunter Who Killed Elephants And Lions For Sport
Man Is Horrified To Learn His Biological Father's Identity - But A Look In The Mirror Man Is Horrified To Learn His Biological Father's Identity - But A Look In The Mirror