Moody's predicts 'credit negative' personal insolvency laws

Ratings agency Moody's is predicting that the personal insolvency legislation unveiled by the Government will be "credit negative".

The agency believes the legislation, due to come into effect next year, will see up to a quarter of all Irish mortgage debt become susceptible to a write-down.

It warns that its anticipated loss assumptions for Irish residential mortgage-backed securities won't be determined until precise details of the tests to establish a borrowers ability to pay are known.