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Dublin: 6 °C Wednesday 13 November, 2019
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Anglo Irish Bank credit rating downgraded to junk

More bad news for Irish banks with latest round of credit downgrades.

Cranes stand above the unfinished Anglo Irish Bank that was to be the their new headquarters in central Dublin, 23 November, 2010.
Cranes stand above the unfinished Anglo Irish Bank that was to be the their new headquarters in central Dublin, 23 November, 2010.
Image: Peter Morrison/AP/Press Association Images

CREDIT RATINGS AGENCY Standard & Poors has downgraded its ratings for Anglo Irish Bank, AIB, Bank of Ireland and Irish Life & Permanent.

Anglo’s credit rating dropped six notches to ‘below investment grade’ or junk, according to Bloomberg.

S&P downgraded the long-term counterparty credit rating, as well as the senior and subordinated debt ratings, for the other three banks.

The agency said in a statement yesterday that it believes Anglo bonds are at risk of being discounted as part of the EU/IMF bailout deal with Ireland and says Ireland may “be forced to reconsider its current supportive stance toward Anglo’s unguaranteed debt”, the AP reports.

The EU and IMF have reportedly been discussing how to make senior bondholders contribute to the cost of the bailout.

Minister Eamon Ryan confirmed today that the bailout negotiations are expected to conclude this weekend, but denied that the interest rate involved would be as high as 6.7%, RTÉ reports.

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