DBRS Morningstar on Dec. 19 upgraded Allied Irish Banks PLC's long-term issuer and deposit ratings to A (low) from BBB (high) and changed the trend on the ratings to stable from positive.

Also upgraded were the bank's long- and short-term critical obligations ratings to A (high)/R-1 (middle), with the trend changed to stable from positive.

The rating agency also confirmed the bank's short-term issuer, debt and deposit ratings at R-1 (low), with a stable trend.

AIB's support assessment remains at SA3, while the intrinsic assessment was upgraded to A (low) from BBB (high).

The agency said the upgrade reflects the bank's progress in further reducing its nonperforming loans as well as sustaining core revenues amid the low interest rate environment.