Moody's slashes Irish banks' ratings to junk status

Moody's has downgraded its rating of Irish banks to junk status, following its decision last week to cut Ireland's sovereign debt rating by two notches.

The ratings agency has downgraded the long-term bank deposit ratings of AIB, EBS and Irish Life & Permanent by two notches to Ba2. Meanwhile, the Bank of Ireland was demoted one notch to Ba1. The agency said the outlook on the long-term bank deposit and unguaranteed senior unsecured debt ratings of these institutions is negative, reports the Irish Times. Moody's last week cut the rating on Ireland's foreign and local currency government bonds by two notches to Baa3 from Baa1, which is just above junk status. In a note the group said: "Moody's negative outlook on the ratings of ...