Moody's downgrades ratings on Irish banks

Moody's Investors Service has downgraded the ratings of five Irish banks, including some of the liabilities guaranteed by the government.

Moody's Investors Service has downgraded the ratings of five Irish banks, including some of the liabilities guaranteed by the government.

HT Image

Moody's said on Monday it had lowered ratings on the bank deposits and senior debt of Allied Irish Banks, Bank of Ireland, EBS Building Society, Irish Life & Permanent and Irish Nationwide Building Society.

The downgrade followed Moody's announcement on Friday that it was cutting Ireland's credit rating by five notches to Baa1 - just three steps above junk-bond status.

Moody's says ratings on the banks dropped because of their reliance on the Irish government's support. Ratings on debt guaranteed by the government through it Eligible Liabilities Scheme were also lowered.