S&P Cuts Irish Banks, Late Again (AIB, IRE)

Standard & Poor’s is at it again, with late debt rating cuts.  This is actually in the Irish banking sector rather than in the sovereign ratings.  As this is too little too late, we are only giving the rating cut summary on each.

S&P cut the ratings The Bank of Ireland (NYSE: IRE) was cut to BB+ from BBB+, while Allied Irish Banks PLC (NYSE: AIB) was cut to BB from BBB.  If you want to know why we say these cuts are too little too late, these were actually investment grade rated up until this cut.  Amazing for bank that would have imploded if it were not for intervention after intervention.

Elsewhere, Anglo Irish Bank was cut to B from B+; Irish Life & Permanent PLC was cut to ‘BBB-.  Two other cuts were seen, but you get the idea. The implications are also negative CreditWatch.

JON C. OGG