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The
Irish Republic has had its credit rating downgraded by ratings agency, Standard
and Poor's.
The agency fears that the growing cost of propping up the country's troubled
banking sector will further weaken the government's finances.
It now thinks that the Irish government will spend 90 billion euros, 10 billion
higher than previous estimates.
The country's own debt agency described the analysis as "flawed".
As a result, the rating has been downgraded from AA to AA-, its lowest since
1995.
The move follows clearance earlier this month for an additional injection of 10
billio euros into Anglo Irish Bank.
The agency now forecasts that net government debt will rise to 113% of GDP in
2010, a substantial increase on the 64% level recorded in 2009.
Source: Credit
Control Journal
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