DBRS cuts Irish Life, Anglo Irish

DBRS said it downgraded the non-guaranteed long-term deposits and non-guaranteed long-term debt ratings of Irish Life & Permanent plc to BB (low) from BBB (high) and Anglo Irish Bank Corp. Ltd. to B (low) from B (high). The non-guaranteed short-term deposits and non-guaranteed short-term debt ratings of Irish Life were downgraded to R-4 from R-2 (high) and the ratings of Anglo were downgraded to R-5 from R-4.

All non-guaranteed ratings on Irish Life have been placed under review with negative implications. The non-guaranteed ratings on Anglo Irish remain under review with negative implications where they were placed on Sept. 10, 2010.

The guaranteed instruments were downgraded to A from A (high) and the ratings of short-term deposits and short-term debt guaranteed by the Irish government to R-1 (low) from R-1 (middle), DBRS said.

The trend on the long-term guaranteed ratings is negative, while the trend on the short-term guaranteed ratings is stable.

The rating actions follow DBRS's downgrade of Ireland to A with a negative trend, the agency said.

The downgrades consider the substantial support afforded Anglo Irish from the government and the view that, given the state of the Irish banking system and wind down mode of Anglo Irish, there is an increasing likelihood of adverse actions towards senior bondholders, the agency said.

The ratings consider the sovereign's reduced ability to support the Irish banking system and the uncertainly to the long-term viability of the banks, the agency added.

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