Irish banks see credit standing fall

Standard & Poors has lowered the credit standing on four big Irish banks today.

The ratings agency said AIB, Bank of Ireland, Irish Life and Permanent and Anglo are struggling to obtain interbank finance despite support from the Government.

Anglo has been downgraded by six notches because S&P believes the Government may be forced to reconsider its supportive stance towards Anglo's unguaranteed debt.

It has also put on watch with negative implications the ratings of Ulster Bank, its UK parent and KBC bank Ireland.