S&P downgrades Ireland

Standard & Poor's has downgraded Ireland's credit rating based on the country's weak banking system.

The ratings agency says the Irish Government will end up spending a further €10bn (£8bn) on bailing out the banks, bringing the total rescue package cost to €90bn. Continued unemployment also plagues the economy. Ireland now has a rating of AA-, cut from AA and the lowest since 1995. Roger Doig, credit analyst at Schroders, says it was "inevitable" that ratings agencies would begin to look at their grades as GDP expectations were revised, and he expects other agencies to follow suit. There is also potential for Irish banks to need even more help in the future, he adds, causing agen...