S&P Global Ratings on Dec. 24 upgraded Bank of Ireland's long-term issuer credit rating to A- from BBB+ and revised the outlook on the rating to stable from positive.
The rating agency also raised the long- and short-term resolution counterparty ratings of the Irish lender to A/A-1 from A-/A-2. The bank's short-term issuer credit rating was affirmed at A-2.
At the same time, S&P Global Ratings affirmed the BBB-/A-3 long- and short-term issuer credit ratings of Bank of Ireland's nonoperating holding company Bank of Ireland Group PLC and revised the outlook on the long-term rating to stable from positive.
The upgrade of Bank of Ireland is based on the agency's recognition of enlarged additional loss-absorbing capacity after taking into account the issuance of a total of €1.55 billion of bail-inable instruments over the second half.
S&P Global Ratings said the outlook revision reflects its expectations that Bank of Ireland Group will continue to proactively reduce its nonperforming loans and maintain its domestic market position over the next two years. The agency noted that it expects the bank to potentially miss its profitability and growth objectives. Bank of Ireland's stable outlook mirrors that on the group.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.