Fitch Slashes Ireland’s Rating; 2 Banks to Offer Restructuring Plans

Fitch Ratings on Thursday dropped Ireland’s credit rating from A+ to BBB+, citing the costs of the banking system restructure and support, as well as ongoing contingent liabilities. On Wednesday, Anglo Irish Bank (ANGIB.UL) and Irish Nationwide Building Society (IRNBS.UL) announced they will submit a joint restructuring plan to the European Commission (EC).

According to a Reuters report, Fitch released a statement saying, “The scale and pace of the deterioration of public finances, continuing contingent fiscal and macro-financial risks emanating from the banking sector means that Ireland's sovereign credit profile is no longer consistent with a high investment grade rating.”