Sept 26 -
Summary analysis -- Irish Bank Resolution Corporation Limited ----- 26-Sep-2012
CREDIT RATING: B-/Stable/C Country: Ireland
Primary SIC: Commercial banks,
Credit Rating History:
Local currency Foreign currency
21-Aug-2012 B-/C B-/C
08-Dec-2011 CCC+/C CCC+/C
23-Jun-2011 CCC/C CCC/C
05-Apr-2011 CCC+/C CCC+/C
02-Feb-2011 B-/C B-/C
26-Nov-2010 B/B B/B
26-Jan-2010 BBB/A-2 BBB/A-2
15-Jun-2009 BBB+/A-2 BBB+/A-2
05-Nov-2008 A-/A-1 A-/A-1
Ratings Score Snapshot
Issuer Credit Rating B-/Stable/C
Business Position Moderate (-1)
Capital and Earnings Moderate (0)
Risk Position Weak (-2)
Funding and Liquidity Below Average
and Weak (-2)
GRE Support +1
Group Support 0
Sovereign Support 0
Additional Factors 0
Major Rating Factors
-- 100% ownership by the Irish government.
-- Outstanding senior unsecured unguaranteed debt obligations now less than EUR150 million.
-- Reliance on funding support from monetary authorities.
-- Still considerable loan impairment charges.
-- Our expectation of further losses, which constrains our assessment of capitalization.
Standard & Poor's Ratings Services' outlook on Irish Bank Resolution Corporation Limited (IBRC) is stable. This reflects our expectation that IBRC's net interest income will continue to benefit from the significant interest income which it receives from its high balance of promissory notes. On this basis we assume that IBRC will continue to generate adequate pre-provision operating income and that, while loan impairment charges and related nonrecurring expenses may remain elevated, the impact on its capital position will remain manageable.
We could raise the ratings if IBRC's successful deleveraging and operating performance give us confidence that the wind-down of IBRC's operations will progress in a predictable manner. We would most likely reflect this in a revision of our assessment of its business position to "adequate" from "moderate".
We could lower the ratings if IBRC's link to the government were to weaken.