S&P cuts Irish banks’ ratings

Standard and Poor’s rating agency has downgraded Ireland’s banking sector as doubts continue about the fallout from the country’s property crash. S&P downgraded the credit ratings of Bank of Ireland and Allied Irish Banks (AIB). It said the economic climate “will exert significant pressure on Irish banks’ asset quality and earnings”. The outlook for Bank of Ireland was raised to “stable”, but it remained “negative” for AIB. Both banks will soon need to raise fresh capital.