Irish banks' credit ratings are unlikely to be changed after the planned government purchase of their property loans, Moody's Investors Service said today.
The sale of the loans to the National Asset Management Agency (Nama), a so-called bad bank, will have a "significant negative impact on the capital base" of the five banks selling loans to NAMA, Moody's said in a statement today.
T"he establishment of NAMA is unlikely in itself to lead to any changes in the rating of the banks as the approximate 30 per cent discount on the book value of the loans is in line with our stress tests and has already been incorporated into the ratings," Moody's said.
The Government has said it will provide the banks with additional capital if they are unable to raise it from investors.
Bloomberg