Global ratings agency, Standard & Poor's has announced that it has downgraded EU's long-term rating due to concerns relating to the regional block's budget.

European officials have dismissed the downgrade form the global agency. They said that S&P downgraded the Netherlands and has lowered its view on six other member states, France, Italy, Spain, Malta, Slovenia and Cyprus. The agency said that it is keeping its credit rating for Ireland unchanged as the country's outlook remained positive.

S&P had predicted that the country would grow at 1.5 per cent this year, which is slower than 2 per cent forecast by the Department of Finance. The Economic and Social Research Institute (ESRI) had predicted a growth rate of 2.7 per cent compared to 2.8 per cent prediction by IBEC. The International Monetary Fund said that that the economy would grow at 1.7 per cent next year.

S&P said Ireland might be able to the budget deficit to below 3 per cent of GDP by 2015. The ratings agency reaffirmed Ireland's BBB+/A-2 long- and short-term foreign and local currency sovereign credit ratings. S&P said the economy was stabilising and that the unemployment is falling in the country.