Fitch downgrades AIB, Bank of Ireland ratings
Credit ratings agency Fitch has downgraded its ratings on AIB and Bank of Ireland and noted both may require additional capital.
The move follows yesterday cut in Ireland’s AAA rating by Fitch by one level to AA+, the second highest available.
The agency has cut its “long-term issuer default” rating on both banks one notch to A- in its investment-grade ratings.
It said the transfer of assets to the National Asset Management Agency (Nama) may “result in an acceleration of credit losses potentially exceeding the banks' pre-impairment operating profit in the current financial year and probably absorbing some of the banks' capital”.
The agency said it would examine the size of the potential losses over the coming weeks and to the extent these will impact on profits and capital.
In a note, Fitch said it expects “further deterioration in the asset quality of the banks' residential mortgage and corporate loans books due to weaker prospects of the Irish economy and rapidly rising unemployment which will put the banks' profitability under continuing pressure”.
The possibility of an interest repayment deferral is increasing due to the larger-than-anticipated credit losses and the relatively large size of the payments facing both banks.
“Fitch has concerns about the banks' ability to pay the coupons on the preference shares. However, the agency notes that AIB and BoI have expressed their intention to continue paying coupons.”
At 1.05pm shares in AIB was down 15.7 per cent at €1.02 while Bank of Ireland was off at 12.8 per cent at 78 cent.
http://www.irishtimes.com/newspaper/breaking/2009/0409/breaking41.htm -----------
Keine Kauf Empfehlung!!
Das Warten ist die grausamste Vermengung von Hoffnung und Verzweiflung, durch die eine Seele gefoltert werden kann.
Devise: "Kaufen, wenn alle anderen verkaufen" |
