12th Dec 2018 07:07
LONDON (Alliance News) - Moody's Investors Service late Tuesday upgraded Bank of Ireland Group PLC's long-term issuer and senior unsecured ratings to A3 from Baa1 with a positive outlook.
In addition, the ratings agency upped Bank of Ireland's long-term deposit rating to A2 from A3, and changed the outlook to stable from positive.
"The long-term senior unsecured debt and deposit ratings were upgraded to A3 from Baa1 and to A2 from A3 respectively, reflecting the uplift resulting from Moody's Advanced Loss Given Failure analysis," the ratings agency said.
Moody's said the level of protection for Bank of Ireland's senior unsecured debt and junior deposits improved after the bank issued bail-in-able debt.
The positive outlook mirrors the potential for a higher baseline credit assessment, Moody's explained. The ratings agency said the baseline credit assessment can be upgraded if the bank continues to reduce its stock of problem loans, improves its profitability, and maintains adequate capital levels.
The outlook on Bank of Ireland's A2 long-term deposit rating was changed to stable as the rating is currently at the same level of Ireland's sovereign bond rating, Moody's explained.
Moody's said Bank of Ireland's ratings could be upgraded if the bank issues more loss-absorbing debt. Meanwhile, the bank's ratings could be downgraded as a result of the redemption of maturing subordinated instruments without their replacement.
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