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RATINGS AGENCY MOODY’S has continued its onslaught on Ireland’s state-owned banks – downgrading its rating of unguaranteed bonds in Anglo and Irish Nationwide.
Unguaranteed senior bonds in the two institutions, which are to be merged and wound down, were downgraded to Caa2 from Caa1 – a downgrade of one notch, but which puts them a massive eight levels below the threshold for ‘junk’.
In a statement, the agency said it was also downgrading the long-term deposit ratings of both institutions to Caa1 – a largely irrelevant move since both banks have sold their deposit books to other state-backed Irish institutions.
The downgrades come in response to Michael Noonan’s announcement that he intended to enforce burden-sharing on the unguaranteed senior bondholders at the two banks, which were the first to be nationalised as the banking crisis began.
The two banks have about €3.5bn of outstanding senior bonds.
The downgrades indicate that the ratings agency believes senior bondholders in the banks will have to share some of the burden of bailing them out. The plans are subject to ECB approval which has not yet been granted.
All six of Ireland’s banks are now rated as ‘junk’ by Moody’s.
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A credit to these workers and their families who seemed to be doing most of the protesting,picketing and online campaigning themeslves ,very proud to be Irish because of them this week.
The important lesson here is that the people stood together, they stayed loyal to each other and their strength came from themselves. They did this for us, for employees that may be in a horrible situation like they have been in the past few months.
They have set a precident for all. It’s not what they received in money in the end, it was people power. I wish them well in their future and I hope it’s a good and positive one.
Hooray! And they should get double nay treble for the trouble they had to go to in order to achieve their rights.
Up the workers – up the workers – up the workers.
Its great that they got a result, well done to all involved and those that supported them all over the world through social networks….. People power is alive and kicking
Just a question? Why didn’t we get a list of the main customers of Vita Cortex customers so we could arrange a boycott unless it is sorted.
Get them where it hurts.
Credit to the VC32 and their families for standing strong through thick and thin for what was right not just for them but for every worker in the country.
Brilliant United bunch – now if we hold together in the Referendum – we too can teach Government and Europe a lesson in not taking the Irish Population for granted as being austerity mugs for the Bankers and inept Politicians !
Fair f?!?! To you all- got what u were entitled to- fair play
have your say