Moody’s upgrades three Irish banks

Moody's Investors Service said it upgraded the long-term senior unsecured debt or issuer ratings of Allied Irish Banks plc, Permanent TSB plc and Ulster Bank Ireland DAC. Moody’s also upgraded the long-term senior unsecured debt ratings of AIB Group plc, Bank of Ireland Group plc and Permanent TSB Group Holdings plc, the holding companies of AIB, BOI and PTSB, respectively.

“The action reflects significant improvement in the solvency of the Irish banks due to the supportive operating environment and material reduction in their legacy impairments resulting from ongoing work-outs and asset sales on a capital accretive or neutral basis. Moody's expects further improvement in the risk profiles of all the Irish banks and that they will maintain good buffers above regulatory requirements despite plans to increase their earnings distribution to shareholders over the next few years,” said Moody’s in a press release.

AIB Group: Moody’s raised the senior unsecured rating to Baa2 from Baa3, the subordinate bond rating to Baa3 from Ba1 and the preferred stock to Ba2(hyb) from Ba3(hyb).

Allied Irish Banks: the agency upgraded the senior unsecured bond rating to A2 from A3 and changed the outlook to stable from positive. Moody’s also raised the subordinate regular debenture rating to Baa3 from Ba1 and the non-cumulative preferred stock to Ba2(hyb) from Ba3(hyb).

For the Bank of Ireland Group: Moody’s upgraded the issuer and senior unsecured issue ratings to Baa2 from Baa3 and changed the outlook to stable from positive. The agency also upgraded the subordinate regular bond/debenture rating to upgraded to Baa3 from Ba1.

Bank of Ireland: Moody’s upgraded the subordinate regular bond/debenture to Baa3 from Ba1, the junior subordinated regular bond/debenture rating to Ba1(hyb) from Ba2(hyb), the preferred stock rating to Ba2(hyb) from Ba3(hyb) and the non-cumulative preferred stock to Ba2(hyb) from Ba3(hyb).

Permanent TSB Group Holdings: Moody’s raised the ratings on the company and its senior unsecured regular bond rating to Ba1 from Ba3 and changed the outlook to stable from positive.

Permanent TSB: Moody’s upgraded the senior unsecured regular bond/debenture rating to Baa2 from Baa3 and changed the outlook to stable from positive.

Ulster Bank Ireland DAC: Moody’s upgraded the long-term issuer rating to Baa1 from Baa2.

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