Standard & Poor's cut its credit ratings for Ireland on Tuesday, saying that the cost of supporting the country's ailing banking sector has risen.
S&P lowered its long-term rating one notch to AA-minus, the fourth-highest investment grade, Reuters reported. The outlook on the rating is negative.
The rating agency said Ireland would need to spend €90 billion ($114 billion) to support the banking sector, compared with its previous estimate of €80 billion.
Earlier this month, Anglo Irish Bank won approval for a new bailout worth as much as €10 billion, more than expected.
"As the true cost of Ireland's bank bailout become clearer, there is greater concern internationally that it may affect the government's bigger worry: its huge fiscal deficit," Ronan Lyons, an independent economic analyst in Dublin, told DailyFinance.
Take the first steps to building your portfolio.View Course »