AIB is the stock symbol of Allied Irish Bank. Ireland credit rating was cut yesterday due to its weak economy, this only can only mean one thing, that the cost of borrowing will be higher. With a higher cost of borrowing, Irish banks will suffer and the government will find it harder to support them, in case they needed to be supported.

AIB does need government help right now, it has been losing money for a while now, and its latest numbers are very, very bad.

I know I have recommended the stock as early as yesterday, but things have changed after this report. I was going to buy about a thousand shares of this stock myself yesterday (just for fun). The stock has closed at 2.08 on Tuesday, and I expect the stock to close well below the $2 level today (the stock is trading $1.97 in pre-market).

I wouldn’t recommend the stock at all at the moment, regardless of the price.