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 Post subject: All Irish Banks downgraded to Junk Status
PostPosted: Mon Apr 18, 2011 9:34 am 
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Of Systemic Importance

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Saw this on P.ie. Probably deserves a mention...

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IRELAND’S GOVERNMENT BACKED banks are now officially junk following a downgrading of the long-term deposit ratings of the four surviving banks by the ratings agency Moody’s.

The decision to downgrade Bank of Ireland (BoI), Allied Irish Banks (AIB), EBS Building Society and Irish Life & Permanent (IL&P) follows the move to cut Ireland’s own ratings status to one level above junk status last week.

Moody’s reports that Bank of Ireland, the country’s largest lender, is now rated at Ba1 following the two notch cut which puts AIB, EBS and IL&P on Ba2, one notch below BoI.

The ratings agency said the rationale for the decision comes from last week’s downgrading of Ireland’s sovereign rating from Baa1 to Baa3 which is the lowest investment grade rating and just one notch off official junk status.

Moody’s said there is a high level of uncertainty about whether the Irish government would extend further support to the banking sector if required, beyond what has already been committed.

Neither Anglo Irish Bank nor Irish Nationwide Building Society were included in the latest ratings.

Both banks are rated much lower than the four main banks and stand at Caa1, meaning they are considered to have “a very high credit risk”. This status is on review for possible downgrade, according to Moody’s.


http://businessetc.thejournal.ie/irelan ... =shortlink

Gurdgiev's phrase about gold plating a yugo and then sinking it at sea springs to mind...

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 Post subject: Re: All Irish Banks downgraded to Junk Status
PostPosted: Mon Apr 18, 2011 10:01 am 
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But in much more important news, the property market is back!

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 Post subject: Re: All Irish Banks downgraded to Junk Status
PostPosted: Mon Apr 18, 2011 10:12 am 
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http://www.irishtimes.com/newspaper/bre ... tml?via=mr

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 Post subject: Re: All Irish Banks downgraded to Junk Status
PostPosted: Mon Apr 18, 2011 11:36 am 
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gaius wrote:
But in much more important news, the property market is back!


... back to the 50's ?

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 Post subject: Re: All Irish Banks downgraded to Junk Status
PostPosted: Mon Apr 18, 2011 11:58 am 
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Too Big to Fail

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IMHO, the Irish regulated banks are now at the level they should have been placed at back in 2005, it not earlier.

Perhaps if the ratings agencies had been doing any real research on the banking system here, rather than just lapping up the press releases and reading the headline's from the annual reports, they would have seen that the celtic tiger bubble for what it was. But at the end of the the day certain old clichés remain true; he who pays the piper calls the tune and caveat emptor.

The credibility of Moody's et al is also at Junk.

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