Ratings agency Moody's downgraded ratings on 12 Irish banks this week amidst government plans to create an asset management company to buy up soured bank loans.
The banks mentioned by Moody's include AIB, Bank of Ireland, ICS Building Society, EBS Building Society, Irish Life & Permanent, Ulster Bank Limited, Ulster Bank Ireland, First Active, Bank of Scotland (Ireland), KBC Bank Ireland, Zurich Bank and Irish Nationwide Building Society.
Moody's downgraded the Bank Financial Strength Rating (BFSR) of AIB and BOI to D with a developing outlook (down from C negative outlook).
Moody's increased its expectation of losses on bank loan portfolios due to continued deterioration in real estate prices, the likelihood of more corporate defaults and the erosion in residential loan performance.