Latest S&P down-grading...what does this mean for the foreign banks?

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micamaca

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I know that the Irish banks are in the stew, but what about KBC Ireland? What is their latest credit-rating and can someone explains what it means? All I know is that AAA+ is good and everything else varies from less good to very bad!!

Would be grateful for some economic edumacation please! I checked their website and googled, but did not learn much more.
 
Anglo Irish Bank are now rated junk by S&P. Junk is normally seen as "high-risk" or "very high risk".

AIB and BOI are now rated BBB by S&P. BBB is seen as "high speculative" or "below investment grade". BBB companies are risky.

KBC Ireland are rated A- by S&P. A- companies are seen as "Upper medium grade" companies. A- companies are of low risk.
 
Hi Ciaran,

is there a reliable website that gives the ratings of all the major banks

thanks in advance

machu
 
Here's the ratings for NIB: [broken link removed] which appears to be the same as for Danske Bank: [broken link removed] Looks very safe as all give it various types of A.
 
More downgrades, this time by Fitch:

http://www.rte.ie/news/2010/1210/banks-business.html

Today, it said it was lowering AIB and Bank of Ireland's rating from A- to BBB. Fitch said their previous ratings reflected the support given to the banks by the State, but it now believed the level of support the State could provide had diminished.
Fitch has left the ratings of Anglo Irish Bank and Irish Nationwide unchanged, but they remain on 'ratings watch negative', which means they face a future downgrade. EBS has also been moved to 'ratings watch negative', as Fitch believes it is now unlikely to be bought by an institution with a higher credit rating.
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At this stage I'm surprised they even bother to rate any of the financial institutions in this country anymore to be honest.

On the other hand while trying to be positive...the sooner we reach ground zero/rock bottom....the sooner we can begin to start the long climb upwards and hopefully with lessons learned....but I doubt that very much:(
 
More downgrades. Moody's have downgraded the Irish banks ...

[broken link removed]

Moody's Investors Service cut its ratings on several major Irish banks days after it slashed its ratings on the European nation itself by five notches.

The ratings firm downgraded various ratings of Allied Irish Banks, the Bank of Ireland, EBS Building Society, Irish Life & Permanent, Irish Nationwide Building Society, ICS Building Society and Anglo Irish Bank.

Moody's on Friday downgraded Ireland's debt to Baa1 from Aa2, leaving it just three rungs above junk-grade territory. The ratings firm then on Monday cited its downgrade of the country as a reason to slash ratings on the banks, saying "the high degree of systemic support from the government had so far largely mitigated the pressure stemming from a much weaker standalone credit profile of these banks."

Ireland has been the latest country to succumb to pressures extending from the European sovereign debt crisis. The government conceded in November that it would require an international bailout package from the European Union and International Monetary Fund to help it avoid defaulting on its debt.

The ratings firm on Friday, talking about why it slashed ratings on Ireland, said the country "has suffered from the repeated crystallization of bank-related contingent liabilities on the government's balance sheet."
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