Moody's downgrades Ulster Bank rating to 'A1'
Credit agency Moody's moved yesterday to cut its long-term ratings on Ulster Bank by two grades to 'A1', largely due to the bank's large exposure to the difficult property and construction sector.
The new rating ranks four levels below Moody's top-notch 'AAA' stance. The outlook for the new rating is considered "negative", it said.
The downgrade followed a similar Moody's cut to RBS's ratings earlier this week, after the UK banking giant warned it expects to post a £28bn loss for 2008 -- the largest in British corporate history.
Moody's analyst Ross Abercromby said, however, that Ulster's "strong franchise will enable the bank to return to more normal levels of profitability in the future when the Irish economy recovers".