S&P lowers Allied Irish debt

Standard & Poor's said that it lowered the ratings on the lower tier 2 subordinated debt instruments issued by Allied Irish Banks plc to D from CC.

The BB/B counterparty credit ratings on Allied remain on CreditWatch, where they were placed with negative implications on Nov. 26, 2010. The rating action affects neither Allied's debt issues that are guaranteed by the Republic of Ireland (BBB+/stable/A-2) nor its unguaranteed senior instruments.

The rating action on the lower tier 2 debt reflects the opinion that a tender offer on the debt by Allied is a distressed exchange and tantamount to default, the agency said.

The CreditWatch status indicates the difficulties associated with the restructuring plan and the impact of the aggressive deleveraging plans on the bank's stand-alone credit profile, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.