AIB and Bank of Ireland have both been put on credit rating watch by Standard & Poor's Ratings Services.
In a statement this evening, S&P's said it was placing both firms on its 'A-1' short-term counterparty credit rating, 'with negative implications'.
S&P said that the decision reflects its expectation that the Government's National Asset Management Agency (NAMA) proposal will proceed, but also uncertainty about the financial profile of the banks following the execution of the NAMA plan.
S&P's said it doesn’t expect the banks' ratings to fall any lower than 'A-1', and added that there is a chance that they could hold on to its 'A' rating.
