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S&P raises bank ratings for Irish banks

S&P raises bank ratings for Irish banks

(27 July 2015 – Ireland) A number of Irish banks had their ratings raised by agency Standard & Poor’s (S&P) due to improved profitability within the industry.

Bank of Ireland had its rating raised to BBB-/A-3, with a positive outlook and S&P’s long-term rating on Allied Irish Banks (AIB) was raised to BB+ with a stable outlook.

The long-term rating on Permanent TSB was also raised to BB- with a stable outlook, while the agency’s outlook on KBC Bank Ireland’s BBB-/A-3 rating was moved from negative to stable.

Standard & Poor’s said profitability at Irish banks had improved “on the back of expanding net interest margins” while operators’ shift to a “lower risk appetite” was likely to continue.

Separately AIB’s mortgage bank raised €750 million (A$1129 million) after issuing a five-year Asset Covered Securities bond at a yield of 0.663 percent.

The bank said the issuance involved 80 investors from 15 different countries, with the sale being “well oversubscribed”.

AIB said the bond was part of its aim to diversify its funding and investor base while also extending maturity on its debt.

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