Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Announcement:

Moody's comments on Irish Banks following announcement of new capital requirements; no impact on senior ratings

01 Apr 2011

London, 01 April 2011 -- Moody's Investors Service has today commented that there is no impact on the senior or standalone ratings of four domestic Irish banks following the announcement of new capital requirements published yesterday by the Central Bank of Ireland (CBI) and the Irish government. The four domestic Irish banks that have remained as going concerns have been subjected to a Prudential Capital Assessment Review and a Prudential Liquidity Assessment Review (PCAR and PLAR respectively). The four banks are Bank of Ireland (BoI, rated Ba1 on review for possible downgrade / Not-Prime for senior debt, Baa2 on review for possible downgrade / P-2 for bank deposits and a BFSR of D, mapping to Ba2 on the long-term scale), Allied Irish Banks (AIB), EBS Building Society (EBS) and Irish Life & Permanent (IL&P). AIB, EBS and IL&P are all rated Ba2 on review for possible downgrade / (P) Not-Prime for senior debt, Baa3 on review for possible downgrade / P-3 for bank deposits and a BFSR of D-, mapping to Ba3 on the long-term scale.

Moody's does not envisage rating implications for the standalone Bank Financial Strength Ratings (BFSRs), due to the PCAR and PLAR results. This is for two reasons:

1. The overall losses that the CBI is incorporating into the capital requirements for the four institutions are in line with those that Moody's has been using in its own scenario analysis (the overall three year provision charge of EUR27.7 billion compares to Moody's expected losses of approximately EUR32 billion).

2. The standalone ratings of the four banks (D for BoI, mapping to Ba2 on the long-term scale and D- for AIB, EBS and IL&P, mapping to Ba3) already incorporated a significant recapitalisation of up to EUR35 billion in total that had been made available under the EU/IMF support package .

In addition there is no impact at present on the senior unsecured debt and deposit ratings of the four institutions. These ratings were placed on review for possible downgrade on February 11, 2011 and the review is focused on assessing the new government's stance towards senior creditors and on Moody's assumptions of the likelihood of further systemic support being forthcoming, if it is needed in the future. Moody's aims to complete this review in the coming weeks. In an earlier rating action today, Moody's has downgraded the dated subordinated debt and the junior subordinated debt of IL&P to Ca and Ca (hyb) from B2 and B3 (hyb) respectively (see "Moody's downgrades Irish Life & Permanent's subordinated debt to Ca" for more details).

CAPITAL STRESS TESTS AND LIQUIDITY REVIEW RESULTS ANNOUNCED

On March 31, 2011 the CBI announced that, following the completion of the Prudential Capital Assessment Review (PCAR) and the Prudential Liquidity Assessment Review (PLAR), the four banks total gross capital requirement is EUR24 billion. In line with the conditions of the EU/IMF support package, the CBI carried out the PCAR and PLAR in conjunction with private-sector input.

The PCAR stress tests have been used to provide three-year (2011-2013) provision charges for the banks. This includes provision charges on the assets to be deleveraged as part of the PLAR process. The capital levels have been set such that the banks must have a 6% core tier 1 ratio after the adverse stress and a 10.5% core tier 1 ratio after the base-case scenario. The adverse stress -- which incorporates a 60% peak-to-trough fall in residential house prices and a 70% fall in commercial property values -- leads to a total provision charge for the four banks of EUR27.7 billion over the three year period.

The total capital requirement of EUR24 billion includes a buffer of EUR2.3 billion and a further EUR3 billion of contingent capital to protect against losses beyond the 2011-2013 period. Including these, the capital requirement is split as follows: AIB (EUR13.3 billion), BoI (EUR5.2 billion), EBS (EUR1.5 billion) and IL&P (EUR4 billion). Although Moody's would expect that some of this capital will be raised through the disposals of subsidiaries (especially in the case of IL&P), potentially from existing shareholders (in the case of BoI) and further burden sharing with subordinated bondholders, the Irish government is likely to provide most of the capital. However, the government has indicated that burden sharing with senior unsecured debt holders is not part of this recapitalisation.

NO IMPACT ON STANDALONE RATINGS AT PRESENT

As discussed above Moody's does not envisage rating implications for the standalone BFSRs as both the losses that the CBI is incorporating into the capital requirements for the four institutions are in line with those that Moody's has been using and the recapitalisation measures (up to EUR35 billion in total) provided in the EU/IMF support package have also already been incorporated.

Furthermore, the BFSRs continue to reflect these additional considerations: (i) the significant short-term funding pressures that the banks are under that has led to the high reliance on external funding support; and (ii) the uncertain operating environment, which means that asset quality and earnings are likely to remain extremely weak. Furthermore, Moody's considers that the deleveraging process could further exacerbate asset quality and earnings pressures.

No deadline has been provided by which the capital must be raised and Moody's assumes that the capital will be injected in the near future. However, if the capital is not forthcoming for any reason, then the BFSRs would likely come under downward pressure.

A key factor in any future upward pressure on BFSRs will be whether these measures can now begin to restore confidence in the Irish banking system. However, for the foreseeable future, Moody's expects that the banks will continue to face funding difficulties and therefore the ongoing liquidity support from the Eurosystem remains vital. Moody's considers that the announcement by the ECB that it will now accept all debt instruments backed by the Irish government as collateral against ECB loans as a credit positive for the banking sector.

SENIOR RATINGS REMAIN ON REVIEW FOR POSSIBLE DOWNGRADE

The senior unsecured debt ratings (Ba1/N-P for BoI and Ba2/(P)N-P for AIB, EBS and IL&P) and the bank deposit ratings (Baa2/P-2 for BoI and Baa3/P-3 for AIB, EBS and IL&P) of the four institutions were placed on review for possible downgrade on February 11, 2011. The review is focussed on assessing the new government's stance towards senior creditors and on Moody's assumptions of the likelihood of further systemic support being forthcoming should it be needed in the future. Moody's aims to complete this review in the coming weeks.

RESTRUCTURING OF THE BANKING SECTOR INCLUDES MERGING EBS INTO AIB

The government has also announced its intention to reduce in size and restructure the Irish banking system. Moody's understands that this will be achieved in two ways (i) the PLAR process will reduce the size of the balance sheets through deleveraging and reduce the banks' loan-to-deposit ratios to below 122.5%; and (ii) merging EBS into AIB will leave two full service banks (BoI and AIB/EBS) together with a restructured IL&P.

The objectives of the PLAR are to deleverage the banking system, reducing the reliance on short-term funding and preparing the banks for the new Basel III liquidity requirements. The banks have therefore identified over EUR70 billion of non-core assets to be sold or run-off over the period to 2013. This will enable the banks to meet the 122.5% loan to deposit ratio target, also by end-2013. The banks will be split into core and non-core divisions, with governance structures put in place to ensure that the non-core business is managed in a way that the loan-to-deposit ratio targets are met.

Moody's views the plans to deleverage the system as credit positive, as it will reduce the high reliance on central bank funding. However, the rating agency noted that a large part of the assets to be sold are in the UK. Given that there are substantial other assets to be sold in the UK over a similar timeframe, this may prove challenging.

The proposed merger of EBS into AIB is unlikely to have any rating implications as the two institutions currently have the same ratings and any merger is unlikely to happen until they have been recapitalised. Moody's will comment further on this when additional details become available.

ANGLO IRISH AND IRISH NATIONWIDE BUILDING SOCIETY

Neither Anglo Irish Bank (Anglo Irish) nor Irish Nationwide Building Society (INBS) were included in the PCAR and PLAR process (both banks are rated Caa1 on review for possible downgrade/Not-Prime for senior debt and bank deposits with BFSRs of E, mapping to Caa1 on the long term scale).

Moody's understands that a further assessment of the capital requirements for Anglo Irish and INBS will be completed in May. If at that time further capital is required, the government has stated that it will discuss with the authorities a timeframe and means to provide that capital.

London
Ross Abercromby
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

London
Johannes Wassenberg
MD - Banking
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's comments on Irish Banks following announcement of new capital requirements; no impact on senior ratings
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.