Irish Banks’ Senior Bonds Fall After Moody’s Downgrades Nation
Irish banks’ senior bonds plunged after Moody’s Investors Service cut the nation’s credit rating by five levels, citing its declining financial strength and the cost of bailing out lenders.
Allied Irish Banks Plc’s 1.5 billion euros ($2 billion) of senior floating-rate notes due September 2011 dropped 5 cents on the euro to 84 cents as of 10 a.m. in London, according to Jefferies International Ltd. prices on Bloomberg. The bank’s 1.8 billion euros of 3.25 percent government-guaranteed bonds due February 2013 dropped 4.39 cents to 87.82 cents, Jefferies prices show.
Bank of Ireland Plc’s 974 million euros of senior 4.625 percent April 2013 notes declined 2.5 cents to 83.5 cents on the euro, according to Jefferies. The Dublin-based lender’s 420 million euros of subordinated 4.625 percent notes maturing in February 2019 dropped 1 cent to 47.
Moody’s cut Ireland’s rating to Baa1, or three levels above junk, from Aa2, giving it a negative outlook. The country is now rated the same as Russia and Lithuania.
http://www.bloomberg.com/news/2010-12-17/irish-banks-senior-bonds-fall-as-moody-s-downgrades-nation-by-five-levels.html