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Moody's Investors Service Upgrades Bank Of Ireland's Ratings To A2

(Alliance News) - Moody's Investors Service said Thursday it has upgraded the long-term issuer ...

Alliance News 11 July, 2019 | 6:57PM
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(Alliance News) - Moody's Investors Service said Thursday it has upgraded the long-term issuer and senior unsecured debt ratings for the Bank of Ireland to A2 from A3.

The credit agency has also upgraded its outlook to stable from positive.

Meanwhile, for the bank's holding company, Bank of Ireland Group PLC, Moody's has reaffirmed the Baa3 senior unsecured and issuer rating, as well; as the positive outlook.

The increased rating upgrade reflects Moody's expectations of further issues of bail-in-able debt by the bank, thus increasing the level of subordination protecting Bank of Ireland's own senior unsecured debt, and also leading to lower loss-given-failure.

For the Bank of Ireland Group, Moody's positive outlook was maintained on the expectation that the bank's standalone baseline credit assessment could be upgraded should it continue to reduce its stock of problem loans and improve its profitability.

Meanwhile the outlook for Bank of Ireland was changed to stable to be in line with Ireland's sovereign bond rating, which stands at A2 with a stable outlook.

Also, Moody's said that an upgrade of the Bank of Ireland's baseline credit assessment would be offset by the loss of one notch of government support, which is currently included in the debt ratings.

Shares in Bank of Ireland Group closed 1.45 higher at EUR4.73 on Thursday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Bank of Ireland Group PLC 4.46 EUR 0.95 -
Bank of Ireland Group PLC 4.48 -

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