DBRS Downgrades Anglo Irish Bank Corporation Limited’s Hybrid Securities

DBRS has today downgraded the Tier 1 hybrid instrument ratings, including the Capital Securities and Perpetual Preferred Securities, of Anglo Irish Bank Corporation Limited (Anglo Irish or the Bank) and related entities, to C from BB (low). The ratings remain Under Review with Negative Implications where they were placed on 19 January 2009. All other ratings remain unchanged.

Today’s rating action follows the Bank’s announcement that it will defer coupon payments on its Tier 1 securities. As a condition of its approval of the Irish Government’s recapitalisation of Anglo Irish the European Commission required that no further coupon payments are made on any Tier 1 securities. Moreover, today’s rating action reflects DBRS’s view that the Bank’s announced intent to proceed with a Liability Management Exercise involving the Tier 1 securities will likely result in the securities being exchanged at a significant discount.

DBRS will continue to monitor statements and actions by Anglo Irish’s management on these hybrid instruments; providing comment and may take further rating actions as warranted.

Notes:
All figures are in EUR unless otherwise noted.

The applicable methodologies are, Analytical Background and Methodology for European Bank Ratings, Second Edition and Enhanced Methodology for Bank Ratings – Intrinsic and Support Assessments, which can be found on our website under Methodologies.

This is a Corporate (Financial Institutions) rating.