Moody’s ups Allied Irish Banks, debt

Moody's Investor Service said it upgraded Allied Irish Banks, plc's long-term deposit ratings to Baa3 from Ba1 and senior unsecured debt ratings to Ba1 from Ba2.

At the same time, the agency upgraded the bank's standalone baseline credit assessment (BCA) to ba3 from b1 and affirmed the senior subordinated rating and the junior subordinated rating at B1 and provisional B2, respectively.

"The rating actions take into account two main factors: firstly the impact that the proposed capital actions announced on 6 November will have on the bank's solvency and liability profile , and secondly the improvements in the bank's credit fundamentals, which we expect to continue in the next year, as indicated by the positive outlook. The proposed capital actions will, from one side, improve AIB's solvency profile, measured by our Tangible Common Equity (TCE). However, on the other side, they affect the level of subordination in the bank's liability structure and, therefore, impact our Advanced Loss Given Failure (LGF) Analysis," Dany Castiglione, Moody's lead analyst on Allied Irish Banks, said in a news release.

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