S&P warns of future Irish financial problems

THE international credit ratings agency Standard & Poor’s has expressed concern about Ireland's financial system.

It said that though domestic banks were highly profitable and compare favourably with their European counterparts, it has some concerns about the rapid surge in credit growth and house buying.

“Rapid credit growth, especially when accompanied by high asset price inflation, can be a leading indicator of future financial-system problems. For this reason, Standard & Poor’s continues to include Ireland on its list of countries exhibiting potential signs of future financial-system stress,” S&P analyst Michelle Brennan said.