Borrowing costs at record highs on back of ratings fears

IRELAND’S borrowing costs hit record highs yesterday after two creditrating agencies warned its debt is at risk of further downgrades, piling pressure on the Government to bring the budget forward.

Ireland is battling to convince investors it can afford to shore up its banking sector and cut the biggest budget deficit in the European Union with a weak economy and growing risks of a political crisis.

“I cannot pretend that the current rating is totally secure,” Chris Pryce, a senior analyst with Fitch, which currently has Ireland at AA- with a stable outlook, said.