Anglo Irish debt rating cut by Moody’s

| September 27, 2010 | 0 Comments
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Troubled lender, Anglo Irish Bank, has today had its debt rating slashed by credit agency Moody’s, sending the euro down against the US dollar.

Moody’s cut the bank’s senior unsecured debt by three notches to Baa3 - just one notch above junk status.

It also downgraded Anglo Irish’s subordinated debt by six notches to Caa1.

The bank, which was nationalised in January 2009, was hit particularly hard during the financial crisis - as were other Irish banks.

The slump in the country’s property market resulted in a fall in the value of investments linked to the property market.

However, today’s downgrades will further raise concerns among investors about the sustainability of sovereign debt in the euro zone.

Commenting on its decision, Ross Abercromby, lead analyst for Anglo Irish at Moody’s, said: “While Moody’s considers the likelihood of the government not supporting this (senior unsecured) debt to be very small, this risk has been reflected in the three-notch downgrade.”

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