Moody’s lowers ratings on five Irish banks

| December 20, 2010 | 0 Comments
Moody's lowers ratings on five Irish banks

Moody’s Investors Service has today downgraded the ratings on five Irish banks - Allied Irish Banks, Bank of Ireland, EBS Building Society, Irish Life and Permanent and Irish Nationwide Building Society.

The downgrade came after Moody’s last week slashed Ireland’s credit rating by five notches to Baa1, from Aa2 – citing ongoing uncertainties over the country’s public finances.

Commenting on today’s downgrade, Moody’s said: “Over the foreseeable future, Irish banks are likely to continue to face very difficult conditions in the wholesale markets and will therefore continue to rely on central bank funding.”

The moves come just weeks after Ireland was forced to accept an €85 billion bailout loan from the European Union and the International Monetary Fund.

The rescue package is designed to strengthen Ireland’s public finances, which have been battered by having to prop up its banking sector.

Ireland’s banking system came close to meltdown after the slump in the country’s property market resulted in a fall in the value of investments linked to it.

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