Moody's cuts all Irish banks to junk status

Monday 18 April 2011 14.22
Downgrade - Moody's cuts Irish banks
Downgrade - Moody's cuts Irish banks

Moody's has cut the long-term bank deposit ratings of Ireland's government-guaranteed banks by two notches this morning following a downgrade for the country last week.

This means that all the Irish banks are now classified as junk.

The rating agency cut Ireland's rating to Baa1, just above junk status, on Friday and kept its outlook on negative amid weak economic growth and uncertainty around solvency tests required by Europe's new rescue fund from 2013.

Bank of Ireland is now rated Ba1 following today's cut. AIB , EBS and Irish Life & Permanent are rated Ba2, one notch below Bank of Ireland.