Ireland

Anglo Irish Bank Corp Limited yesterday (Tuesday) launched a buyback offer aimed at all remaining outstanding external covered bonds launched under a UK programme, an operation that an official at the issuer described as a “clean-up exercise”.

Standard & Poor’s on Friday cut mortgage backed covered bonds issued by Ireland’s AIB Mortgage Bank and Bank of Ireland Mortgage Bank from AA+ to AA and from AAA to AA+, respectively, after downgrading their parents’ issuer ratings on the same day.

Moody’s today (Thursday) indicated that the long term debt ratings of Bank of Ireland, EBS Building Society and Irish Life & Permanent could end up lower than the rating agency envisaged when it placed them on review for possible downgrade on October 6.

While not immune from nervousness triggered by uncertainty about the prospects and structure of a bailout package for Ireland the covered bond market this week held up relatively well, according to syndicate bankers, who attributed thinner liquidity to the approaching end of the year. A large US dollar private placement yesterday (Thursday) wrapped up sizeable new issuance in covered bonds this week.

Fitch put public sector covered bonds issued by Depfa ACS Bank on negative review today (Wednesday) because of the potential impact of the issuer’s business restructuring.

Standard & Poor’s affirmed Bank of Ireland Mortgage Bank’s covered bond programme at AAA yesterday (Wednesday), but revised its outlook from stable to negative because of a change to the outlook of Bank of Ireland from stable to negative on 14 September.

Standard & Poor’s downgraded mortgage backed covered bonds issued by AIB Mortgage Bank from AAA to AA+, on negative outlook, yesterday (Monday), after cutting the bank’s parent on Friday.

Standard & Poor’s downgraded Allied Irish Banks from A- to BBB+, on negative outlook, on Friday, because of a deterioration in the bank’s reputation driven by an increase in the level of capital it is required to hold by its regulator and government imposed management changes.

Moody’s yesterday (Thursday) placed on review for possible downgrade mortgage covered bonds issued by AIB Mortgage Bank, Bank of Ireland Mortgage Bank and EBS Mortgage Finance. Fitch today said that a downgrade of Ireland’s sovereign rating will not have an immediate impact on its ratings of Irish covered bond programmes.

Moody’s put the Aa3 rating of public sector covered bonds issued by Depfa ACS Bank on review for downgrade today (Thursday) because of a cut in the issuer’s rating from A3 to Baa3 last Friday.

Fitch downgraded mortgage backed covered bonds issued by Anglo Irish Bank and Anglo Irish Mortgage Bank (AIMB) from AA+ to A yesterday (Tuesday), and kept the programmes on Rating Watch Negative. Meanwhile, Moody’s put several Irish banks on review for downgrade after taking the same action on the sovereign.

Moody’s has cut the ratings of Depfa plc and Depfa ACS Bank from A3 to Baa3 following a transfer of assets to the Hypo Real Estate’s wind-down entity, FMS Wertmanagement, that the rating agency said is part of a process whereby the Irish entities will be less likely to enjoy support.