Standard & Poor’s downgrades Irish government debt

RTE reports that Standard & Poor’s Ratings Services downgraded it’s long term sovereign credit rating for Ireland from ‘AAA’ to ‘AA+’. The downgrade had been well telegraphed and the percieved risk in Irish government debt long priced into the spread paid by the government on Irish treasuries over German government bonds. S&P warn that Ireland may be downgraded again if public finances deteriote further.

Bloomberg report that the cost of insuring Irish government debt rose 31 basis points, while the spread over German yields rose by 6 basis points on the news.