Moody's on Feb. 5 placed certain ratings of Ulster Bank Ireland DAC on review for upgrade.
The ratings placed on review are the Baa2/Prime-2 long- and short-term deposit ratings, the Baa3/Prime-3 long- and short-term issuer ratings, the "baa3" adjusted baseline credit assessment and the A3(cr)/Prime-2(cr) long- and short-term counterparty risk assessments.
The agency said it believes that Ulster Bank Ireland will remain an integral part of parent Royal Bank of Scotland Group Plc's ring-fenced banking subgroup, which it expects to have a stronger credit profile given that it will comprise mainly retail and small- and medium-sized enterprise activities and will have a more deposit-based funding profile.
The action follows similar moves taken Jan. 30 on National Westminster Bank Plc and Northern Ireland-based Ulster Bank Ltd., which will also sit inside the ring-fenced subgroup. Ring-fencing is required under U.K. legislation aimed at separating retail and similar business from riskier activities such as investment banking.
