C. Flower
15-09-2010, 12:11 PM
http://www.irishtimes.com/newspaper/breaking/2010/0915/breaking33.html
Our State Bank, Anglo Irish Bank, has been downgraded by Fitch from AA- to BBB+, on Negative watch.
This downgrade puts pressure on Government to Guarantee Senior debt and is a response to the new draft proposal for Anglo Irish launched last week.
Fitch has downgraded the Long-term Issuer Default Ratings (IDRs) of Anglo Irish Bank from 'A-' to 'BBB+' .
It has also put the bank on negative watch, revising its rating watch to Rating Watch Negative (RWN) from Rating Watch Evolving (RWE)
The agency said that the downgrade reflects Fitch's view regarding the level of future government support that will be available to Anglo's newly announced Asset Recovery Bank (ARB)
On September 8th, the Government announced its new restructuring proposal for Anglo, whereby the bank will be split into two separate legal entities: the Asset Recovery Bank (ARB) and the Funding Bank.
According to Fitch, despite being government owned, the Asset Recovery Bank, as a wind-down institution not engaging in new lending and decoupled from Anglo's deposit base, will be less systemically important than the current Anglo.
Our State Bank, Anglo Irish Bank, has been downgraded by Fitch from AA- to BBB+, on Negative watch.
This downgrade puts pressure on Government to Guarantee Senior debt and is a response to the new draft proposal for Anglo Irish launched last week.
Fitch has downgraded the Long-term Issuer Default Ratings (IDRs) of Anglo Irish Bank from 'A-' to 'BBB+' .
It has also put the bank on negative watch, revising its rating watch to Rating Watch Negative (RWN) from Rating Watch Evolving (RWE)
The agency said that the downgrade reflects Fitch's view regarding the level of future government support that will be available to Anglo's newly announced Asset Recovery Bank (ARB)
On September 8th, the Government announced its new restructuring proposal for Anglo, whereby the bank will be split into two separate legal entities: the Asset Recovery Bank (ARB) and the Funding Bank.
According to Fitch, despite being government owned, the Asset Recovery Bank, as a wind-down institution not engaging in new lending and decoupled from Anglo's deposit base, will be less systemically important than the current Anglo.