Moody’s ups Allied Irish Banks to Ba3

Moody's Investors Service said it upgraded Allied Irish Banks plc's senior debt ratings to Ba3 from B1 and deposit ratings to Ba2 from Ba3 and adjusted upwards the bank's standalone credit assessment to b1 from b2.

According to the agency, the actions follow (a) the improving operating environments in Allied Irish Banks’ two largest operating markets, Ireland (Baa1 stable) and the UK (Aa1 stable); (b) the bank's strengthening credit fundamentals and its return to profitability; and (c) Allied Irish Banks’ adequate capital levels, further supported by its performance under the European Central Bank's Comprehensive Assessment.

Moody's also upgraded Allied Irish Banks’ subordinated debt and hybrid instrument ratings.

Simultaneously, the agency affirmed the bank’s standalone bank financial strength rating at E+ and the short-term deposit and debt ratings at Not Prime. The outlook on the standalone bank financial strength rating and on the debt instruments remains stable.

The outlook on deposit ratings remains negative reflecting the lower probability of government (systemic) support expected for creditors following the recent adoption of the Bank Recovery and Resolution Directive and the Single Resolution Mechanism regulation in the European Union.

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