Moody’s yesterday evening upgraded the deposit ratings of AIB, BOI and PTSB, leaving KBC and Ulster Bank unchanged.
Furthermore, Moody’s upgraded the baseline credit assessments of AIB (ba2 from ba3), BOI (ba1 from ba2), PTSB (b3 from caa1) and Ulster, whilst it affirmed KBC Ireland. It upgraded the senior unsecured ratings of AIB and PTSB and affirmed the senior unsecured ratings of BOI.
It maintained the positive outlook on BOI, AIB and Ulster Bank Limited’s long term senior unsecured debt ratings and changed the outlook to positive from stable on the long term senior ratings of PTSB and Ulster Bank Ireland.
According to Goodbody Stocbrokers, "The ratings actions were driven by a sharply improved operating environment, which led to an increase in the macro profile of Ireland to Strong from Moderate+ as well as favourable developments in credit metrics, most notably asset quality, but also the improving quality of earnings and strengthening capital metrics."
They added, "Moody’s highlighted the rapid and material deleveraging of the private sector as well as stronger funding conditions as most banks have regained the ability to issue different debt instruments."
Source: www.businessworld.ie
