DUBLIN (Reuters) - Ireland’s debt management agency disagrees with the basis for rating agency Standard & Poor’s downgrade of the country’s credit rating, the agency said in a statement.
“In terms of the specific analysis by S&P, this is largely predicated upon an extreme estimate of bank recapitalisation costs of up to 50 billion euros,” the National Treasury Management Agency said in a statement issued late on Tuesday.
“We believe this approach is flawed.”
S&P cut Ireland’s long-term rating one notch on Tuesday to AA-minus, the fourth highest investment grade, and assigned the country a negative outlook, saying Ireland faces substantially higher costs to support its ailing financial institutions.
Reporting by Carmel Crimmins; Editing by Kim Coghill