Fitch, a ratings agency, on Wednesday knocked Ireland's long-term debt rating down one notch, from AA- to A+, with a negative outlook, less than a week after the government unveiled a new bailout plan that has left a gaping hole in the country's budget.

"The downgrade of Ireland reflects the exceptional and greater-than-expected fiscal cost associated with the government's recapitalisation of the Irish banks, especially Anglo-Irish Bank," Chris Pryce, the director of Fitch's sovereign group said