Market falls as ratings cut

THE ISEQ index declined 19.88 points to close at 2,819.44 yesterday. Moody’s cut its credit rating on Ireland by five notches from Aa2 to Baa1 because of increasing uncertainty over the country’s economy and public finances.

Moody’s also said the Baa1 rating outlook is negative and said its downgrade reflected the problems in the Irish banking system, the ’increased uncertainty regarding the country’s economic outlook; and the decline in the Irish government's financial strength’.

In the financial sector, AIB shed 0.5c to 45c. Bank of Ireland gave up 5.1c to 31.9c. Irish Life & Permanent decreased 9.2c to 96c, while insurance group FBD Holdings progressed 20.5c to €6.174.