And the hits keep on coming for Anglo Irish.
Now Moody’s has downgraded the bank’s non-backstopped debt (via FT Alphaville)
Moody’s Investors Service has today downgraded the senior debt rating of Anglo Irish Bank Corporation Limited (“Anglo Irish”) by three notches to Baa3/Prime-3 from A3/Prime-1, and is maintaining it on review for possible downgrade. At the same time, Moody’s has downgraded the dated subordinated debt held by Anglo Irish by six notches to Caa1 from Ba1 and has assigned a negative outlook…
“Moody’s expects a continued asset quality deterioration in the loan book of Anglo Irish that will require further government support for the bank’s liabilities,” says Ross Abercromby, Vice President and lead analyst for Anglo Irish at Moody’s. The rating agency believes that the novation of the deposits into the FB could increase the government’s options to share the burden of such support with other creditors that remain in the ARB. Without an explicit government guarantee for senior unsecured note holders, Moody’s believes that the ratings for these instruments need to incorporate this greater marginal risk.
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