S&P acts AIB

S&P said it raised the ratings on Permanent TSG Group Holdings plc's (PTSB) main operating bank, Permanent TSB plc, to BBB from BBB- and affirmed the BB- ratings on nonoperating holding company PTSB Group Holdings plc. The outlooks are positive on both entities.

“By year-end 2023, we expect PTSB to reach a buffer of subordinated bail-in-able debt large enough to benefit from two notches of ratings uplift,” S&P said in a press release.

The agency also revised the outlooks on AIB Group plc, Bank of Ireland Group plc (BOI) and their respective operating companies to positive and affirmed the ratings.

“We expect Irish banks to continue reducing their nonperforming loans over the next 18-24 months and stabilize them at the European banking system average.Irish banks' asset quality has been improving over the past decade thanks to continuous balance sheet clean-ups and healthy underwriting standards for new loan generation. At year-end 2022, we estimate NPEs at about 3.8% of gross loans for AIB and PTSB, and about 3.7% for BOI (including the NPE disposal transaction in the fourth quarter), down from 21.6%, 23%, and 11.4% respectively in 2016,” S&P said.

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