Fitch Ratings slashed Ireland's credit rating by three notches to BBB+ from A+ and put it on a stable outlook, saying the downgrade reflected the additional costs of restructuring and supporting the banking system.
"The scale and pace of the deterioration of public finances, continuing contingent fiscal and macro-financial risks emanating from the banking sector means that Ireland's sovereign credit profile is no longer consistent with a high investment grade rating," Fitch said in a statement.
It added that while Ireland had received relative security via emergency funding from the EU and IMF, the highly uncertain economic outlook and loss of market access had also contributed to the downgrade.
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