Ratings agency Fitch has downgraded the individual ratings of five Irish banks due to the deteriorating economic environment in the State.
In a statement Fitch said it had noted the abrupt contraction in Irish economic growth forecasts for 2009.
Rising unemployment and a worsening outlook for commercial property were likely to lead to weaker revenue generation, sharp rises in impaired loans and steep falls in operating profitability for the Irish banks.
Anglo Irish, Bank of Ireland, Irish Life & Permanent and Irish Nationwide Building Society with the EBS building society placed on rating watch as Ireland's economy continues to deteriorate.
"These rating actions incorporate our expectation of significantly weaker earnings by the banks and poorer asset quality," said Matthew Taylor, senior director in Fitch's financial institutions group.