Fitch lowers Ireland’s credit rating

IRELAND’S top AAA credit rating was lowered one level by Fitch Ratings last night, the second reduction in two weeks, after global financial turmoil fuelled a surge in borrowing costs and swelled the budget deficit.

The rating was dropped to AA+ with a “negative” outlook, indicating Fitch is more likely to lower the classification again than raise it or leave it unchanged. Ireland received the top rating in December 1998. S&P’s lowered Ireland’s rating one step to AA+ on March 30.

The change comes a day after the Government announced an emergency budget aimed at controlling a ballooning deficit and reviving the stricken economy. The Government plans to take on property loans from banks worth as much as e90 billion, the equivalent of about half our annual economic output.