Credit rating agency Moody's has downgraded the senior unsecured debt of the six Irish banks.
The downgrade had been expected - mainly due to increased speculation about how senior debt that is not guaranteed by the State might be dealt with over the coming months.
Moody's seems to be under the impression that some senior bondholders are not be as immune from haircuts as previously thought.
Finance Minister Brian Lenihan said this week Ireland was pressing its European partners to allow it to substantially discount unguaranteed senior bank debt, but he could not see the European Central Bank (ECB) contemplating such a move.
'The Irish Government's very supportive policy to date has been brought into question over the past days, in statements from both the leading opposition party and the incumbent finance minister,' Moody's said in a statement.
'While some of these statements may reflect the current pre-election debate, Moody's is increasingly concerned that they represent a growing underlying threat for senior creditors.'
