Two ratings agencies downgrade Anglo

Dublin: Moody’s followed fellow ratings agency Standard & Poor’s in cutting the senior debt rating of Anglo Irish Bank yesterday after the Government said last week it wanted to impose losses on bondholders at the failed lender.

The Government is taking aim at more than €3.5 billion of senior debt at Anglo and Irish Nationwide, saying they are in a different category to other banks in the state because they are being wound down.

Moody’s downgraded both banks’ unguaranteed senior unsecured debt ratings by one notch to CAA2 from CAA1, and put them on negative watch to reflect the continuing uncertainty about a potential default on the instruments.

“The recent statements by members of the Government that it will discuss this issue again in the autumn increases the likelihood that losses could be imposed on this particular class of debt at these two institutions,” Moodys said.