Both Moody's and Fitch have downgraded Irish Life and Permanent (IL&P). The reasons given are recent senior level resignations and the economic downturn.
Ratings agency Moody's cut IL&P from the top AAA-rating - an indication of financial strength and a company's ability to repay its borrowings - to A1. This will mean the company will have to pay investors higher interest for funding as it is regarded as a slightly higher risk.
It also reduced IL&P's bank financial strength rating and said it may look at further downgrades. The agency cited the ongoing high reliance on market funding as a key factor in the downgrade of the bank's financial strength.