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Ireland Rating Lowered by S&P as ‘Barbarians’ Gather

Ireland’s debt rating was lowered two steps by Standard & Poor’s and may be cut again as the government prepares to unveil a four-year deficit-cutting plan and contagion spread through the rest of the euro region.

“The Irish government looks set to borrow over and above our previous projections to fund further bank capital injections into Ireland’s troubled banking system,” S&P said in a statement late yesterday. Putting the rating on review for downgrade reflects the risk that talks on a European Union-led rescue may fail to stanch capital flight, it said.