Moody's cuts Irish banks to junk

City A.M. Reporter
Moody's cut the long-term bank deposit ratings of Ireland's government-guaranteed banks by two notches on following a sovereign downgrade last week, meaning that all the lenders are now classified as junk.

The rating agency cut Ireland's rating to Baa1, the verge of junk status, on Friday and kept its outlook on negative amid spluttering economic growth and uncertainty around solvency tests required by Europe's new rescue fund from 2013.

Bank of Ireland, the country's largest lender, is now rated Ba1 following the two-notch cut.

Allied Irish Banks, EBS Building Society and Irish Life & Permanent are rated Ba2, one notch below Bank of Ireland.