From Finfacts:Moody's Investors Service on Monday cut its ratings on five Irish banks to junk status following its downgrade of Irish sovereign debt last week.
The rating agency said the cut reflected the reduction in the level of systemic support embedded in the deposit ratings following the downgrade of the sovereign rating.
The long-term bank deposit ratings of Allied Irish Banks (AIB), Bank of Ireland (BoI), EBS Building Society (EBS) and Irish Life & Permanent (IL&P) was lowered by two notches, while that of ICS Building Society (ICS) was cut by one notch.
Also, the unguaranteed senior unsecured debt ratings of AIB, EBS and IL&P was downgraded by one notch to Ba3 and that of Bank of Ireland to Ba2.
The outlook on the long-term bank deposit and unguaranteed senior unsecured debt ratings of these institutions is negative, the agency said.
Last week, Moody's downgraded Ireland's sovereign ratings by two notches, citing weakening financial position of the government amid subdued economic activity. The outlook on the ratings remains negative.
The downgrade means some investors will no longer be allowed to buy Irish bank under the terms of their investment mandate. It will also hit corporate deposits.
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