Wednesday 22 November 2017

Moody’s puts more Irish bank ratings under review

Bank of Ireland: under review at Moody's. Photo: Bloomberg News
Bank of Ireland: under review at Moody's. Photo: Bloomberg News

Moody’s Investors Service placed more ratings of Irish lenders, including Bank of Ireland and Anglo Irish Bank, under review before a probable "multi- notch" downgrade of the sovereign.

Moody’s placed on review for a possible downgrade the short-term bank deposit and debt ratings of Bank of Ireland, EBS Building Society and Irish Life & Permanent, the ratings firm said in a statement today.

Moody’s also placed on review the A3 long-term bank deposit rating of Bank of Ireland’s UK business.

“This is because a multi-notch downgrade of the Irish sovereign is now the most likely outcome of the ongoing review of the sovereign rating,” Moody’s said.

Taoiseach Brian Cowen is racing to conclude talks with the European Union and the International Monetary Fund on an €85bn aid package as his governing coalition crumbles.

As a precursor to the bailout, the Government yesterday laid out a four-year plan to reduce spending and raise taxes.

Moody’s also placed the dated subordinate debt of EBS and the subordinated, junior subordinated, cumulative Tier-1 securities and non-cumulative preference shares of Allied Irish Banks on review for a possible cut.

Bloomberg

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