Moody’s upgrades debt-rating of Irish banks

Rating agency Moody's has upgraded to Baa1 from Baa3 the government-guaranteed debt ratings of four Irish banks: Allied Irish Banks, EBS, Bank of Ireland and Permanent tsb (PTSB). The outlook on these debt ratings changed to stable from positive.

The action follows Moody’s upgrade of Ireland’s government bond rating to Baa1 from Baa3 and the change in outlook on this rating from positive to stable. All other ratings of these banks including the deposit ratings, senior and subordinated debt ratings are unaffected by this rating action since the banks’ standalone bank financial strength ratings (BFSRs) remain unchanged. The other Irish bank ratings are unaffected by today’s action.

These four banks have all issued public debt under the Eligible Liabilities Guarantee scheme, which ceased on March 28 th 2013 for new issuances. The assigned government-backed Baa1 ratings are based on the unconditional and irrevocable guarantee from the Irish government.