DBRS lowers some Anglo Irish debt

DBRS said it downgraded Anglo Irish Bank Corp. Ltd.'s dated subordinated debt rating to C from BB. The rating action does not impact the various government-guaranteed debt ratings of Anglo Irish or its non-guaranteed senior ratings, including its issuer rating of BBB (low).

All non-guaranteed ratings of Anglo Irish remain under review with negative implications, where they were placed on Sept. 10.

The rating action follows the Irish minister for finance's statement indicating that the minister's office is working on legislation that will enable the implementation of reorganization measures specific to Anglo Irish Bank and Irish Nationwide Building Society. The agency said the legislation is expected to address the issue of burden-sharing by subordinated debtholders in the two institutions.

Given the minister's statement and the likely actions, DBRS expects that the subordinated debtholders will be disadvantaged and will suffer losses as they are made to share in the costs of supporting Anglo Irish Bank.

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