The ratings of the Irish banks were unimpressive and this has brought a lot of pressure on these banks.

Moody, a credit rating agency has given a very bad rating to the Irish banks and this has added pressure on the small European countries.

Moody downgraded the bank’s long-term bank deposit ratings of all Allied Irish Banks, EBS, and Irish Life & Permanent by 2 points and made it Ba2.

Bank of Ireland was downgraded but placed one notch above others at Ba1.

The Republic’s central bank quoted last month that the cost of bailing out the bank sector could well reach 70bn euro.

Reports suggested that last year the country required 85bn worth bail-out.

"Should the intended fiscal consolidation goals not be met, a further rating downgrade would likely follow", Moody's said in a statement.

According to the reports by the International Monetary Fund and the European Union, the country is progressing well on the economic crisis it has faced. These two bodies have given bulk of rescue funds for saving the country’s economy.

Moody’s remained concerned regarding the ability of the country to push through this stage of economic crisis and manage its own debts.