Credit rating agency Fitch has downgraded Ireland's debt rating by three notches from 'A+' to 'BBB+'. This puts Ireland in the same category as Libya and South Africa.

The agency said the downgrade reflects the additional costs of restructuring and supporting the banking system as well as weaker prospects and greater uncertainty regarding the economic outlook.



'The scale and pace of the deterioration of public finances, continuing contingent fiscal and macro-financial risks emanating from the banking sector, combined with the highly uncertain economic outlook and loss of market access, means that Ireland's sovereign credit profile is no longer consistent with a high investment grade rating', Fitch said.



However it added that the country's continued investment grade status is underpinned by the EU-IMF external support, as well as the Government's 'demonstrated commitment to fiscal consolidation and still strong underlying economic fundamentals'.



Today's downgrade follows the agency's review announced last month and comes after Fitch downgraded Ireland to 'A+' with a negative outlook in October.