(Alliance News) - Moody's Investors Service on Monday assigned Irish lender AIB Group PLC's tier 2 subordinated debt securities a Ba1 rating.
The credit ratings agency assigned the ratings to the lender's long-term subordinated euro medium term note programme.
Moody's also assigned a Ba1 rating to the EUR500 million subordinated notes issued under the programme.
"This reflects AIB's adjusted baseline credit assessment of baa3 and the agency's expectation of high loss severity for this instrument under its Advanced Loss Given Failure analysis, due to the limited volume of debt and protection from more subordinated instruments and residual equity," Moody's said.
Shares in Allied Irish Banks closed 3.4% lower in London on Monday at EUR2.87 each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Aib Group (AIBG)