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.
Despite unprecedented cash injections by governments in March 2009, the 12 months to September 2010 have seen increased levels of volatility.
The UK's credit rating has been revised from negative to stable by S&P, further consolidating its ‘AAA' status and boosting the coalition government's economic plans.
Investors expect Moody's to cut its Aaa credit rating on Spanish debt by up to two levels after a three-month review it announced in June ends tomorrow.
Standard & Poor's downgrade of Ireland's credit rating was "inevitable", and other ratings agencies are likely to follow suit, says Schroders.