Moody’s ups Allied Irish Banks debt

Moody’s Investors Service said it upgraded the long-term senior unsecured debt and deposit ratings of Allied Irish Banks, plc to A3 and A2 from Baa2 and Baa1, respectively.

The agency also upgraded the long-term senior unsecured debt rating of the bank's holding company, AIB Group plc, to Baa3 from Ba2.

Moody's upgraded the baseline credit assessment and adjusted baseline credit assessment of Allied Irish Banks to baa3 from ba1.

The agency assigned a positive outlook to the A3 long-term senior unsecured debt rating of Allied Irish Banks and to the Baa3 long-term senior unsecured debt rating of AIB Group, while assigning a stable outlook to the A2 long-term deposit rating of Allied Irish Banks.

Moody's also upgraded Allied Irish Banks' long-term counterparty risk ratings and counterparty risk assessments to A2 and A2(cr) from A3 and A3(cr), respectively.

The upgrades of the senior unsecured and deposit ratings reflect both the improvement in Allied Irish Banks's asset quality and an expectation of a reduction in loss given failure for deposits and senior bank and holding company debt given the additional protection provided by debt securities to be issued by AIB Group, the agency said.

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