This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
OK
Dublin: 10 °C Wednesday 17 October, 2018
Advertisement

Fitch downgrades Ireland, sets outlook to negative

The agency points to the cost of the Anglo bailout to explain the downgrade.

THE RATING AGENCY Fitch has cut Ireland’s credit rating from AA- to A+ and has changed its outlook for the state to negative.

Fitch said in a statement that the downgrade “reflects the exceptional and greater-than-expected fiscal cost associated with the government’s recapitalisation of the Irish banks, especially Anglo Irish Bank”.

It added that the negative outlook reflects “the uncertainty regarding the timing and strength of economic recovery and medium-term fiscal consolidation effort”.

However the agency said that it believed the government’s newest estimate, announced on 30 September, was “plausible” and added that, if the plan goes as is hopes, that Ireland will retain “considerable financial flexibility”.

The agency also said that it expected a further strengthening of the fiscal consolidation effort to be set out by the Minister of Finance in November.

It said that currently Ireland’s biggest challenges were the ongoing distress in the housing and commercial real estate markets, household sector de-leveraging, and the uncertainty over the global economic outlook.

The euro fell below $1.38 following the news.

  • Share on Facebook
  • Email this article
  •  

About the author:

Read next:

COMMENTS

This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
write a comment

    Leave a commentcancel