S&P downgrades Ireland's credit rating

Standard & Poor's has downgraded Ireland's long-term sovereign credit rating from A to AA- as the country prepares to accept an EU bailout.

The ratings agency has also reduced Ireland's short-term rating from A-1+ to A-1, reflecting its view the government will borrow more than S&P's previous projections to stabilise its banking system. Credit analyst Frank Gill said the "external anchor" of the EU and IMF rescue package may instill confidence in financial sector liquidity, but will not reduce the government's liabilities or macroeconomic pressures. "Were it not for this support, the sovereign rating would be under even greater pressure due to our view of the liquidity challenges posed by Ireland's banking system. "At ...