DBRS cuts subordinated debt of some Irish issuers

DBRS said it downgraded Allied Irish Banks plc's subordinated debt to B from A, Bank of Ireland's subordinated debt BB from A and Irish Life & Permanent plc's subordinated debt to BB from BBB.

The downgrades reflect DBRS' view that the risk of loss for holders of subordinated debt instruments of Irish banks has increased significantly given recent actions and various statements by the Irish Government. Specifically, DBRS said the Irish Government has indicated its expectations to force loss-sharing among junior bondholders, in certain financial institutions, as a result of the recapitalization and restructuring of the banking sector.

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