Moody’s: Ba1 to Bank of Ireland debt

Moody's Investors Service said it assigned a provisional Ba1 long-term subordinate debt rating to Bank of Ireland Group plc (BOI Group, issuer rating Baa3 positive), the holding company of Bank of Ireland (BOI, rated long-term bank deposits A3/senior unsecured Baa1 positive, BCA baa3).

The subordinate debt rating is based on the consolidated Loss Given Failure (LGF) analysis of the group, including the main operating company, Bank of Ireland.

“According to Moody's Banks Methodology, in countries subject to the EU's Bank Recovery and Resolution Directive (BRRD), such as Ireland, which we consider an Operational Resolution Regime, it is assumed that if a holding company forms part of the same resolution perimeter as the bank, as is the case of the BOI Group, holding company subordinate obligations rank below the holding company's senior unsecured obligations, in this case rated at (P) Baa3, and pari passu with the operating company's subordinate obligations, rated at Ba1,” Moody’s said in a news release.

“This is because Ireland's implementation of EU's BRRD mandates write-down and conversion for bank-issued capital instruments as the initial source of loss-absorbing capital.”

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