S&P cuts Allied Irish debt

Standard & Poor's said that it has lowered its rating on Allied Irish Banks plc's lower tier 2 nondeferrable subordinated debt securities to CCC from B.

The BBB/A-2 counterparty credit ratings remain on CreditWatch with negative implications where they were placed on Nov. 26, S&P said.

The downgrade reflects the view that the likelihood of a liability management exercise by the bank in respect of its lower tier 2 instruments has increased and the view that there is a "clear and present risk" of a restructuring, the agency said.

The counterparty credit ratings reflect the substantial support that is being provided by the Irish government and central bank authorities, S&P said.

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