Replies to post #1046 on Allied Irish Banks (AIB)

[mlkrborn]

Irish Banks ratings lowered; especially two reduced to Junky status:

Irish Banks Downgraded To Junk Following Sovereign Rating Cut
12:25p ET February 2, 2011 (Dow Jones)
Irish Banks Downgraded To Junk Following Sovereign Rating Cut

LONDON (Dow Jones)--Two of Ireland's main banks' counterparty credit ratings were downgraded to junk by Standard & Poor's Corp. Wednesday, following the ratings company's downgrade of the sovereign to A- from A because of uncertainty surrounding the financial sector.
S&P said another downgrade to the sovereign is possible as long as the question remains over how much money will be needed to repair the banking sector.
Allied Irish Banks' counterparty credit rating was lowered to BB/B from BBB/A-2, while Bank of Ireland's rating has been downgraded to BB+/B from BBB+/A-2.
Anglo Irish Bank Corp.'s counterparty credit rating was downgraded to B-/C from B/B.
The agency noted there is the potential for further downgrades.
Analysts at Daiwa Capital Markets said the market impact "has been negligible given the already distressed prices at which sovereign and bank debt trades."
They said senior bank bondholders are more likely to be interested in forthcoming elections and the possibility of having losses imposed on them should the current opposition win power.

-By Irene Chapple, Dow Jones Newswires; 44 207 842 9291; [e-mail]