SYDNEY (Reuters) – Moody’s Investors Service has lowered Ireland’s local and foreign currency bond and deposit country ceilings to A3 from Aaa, citing financial and economic risks in the country.
The lower ceiling means that the highest rating that can be assigned to a domestic issuer in Ireland or to a structured finance security backed by Irish receivables is now A3.
“Moody’s notes that these changes have limited rating implications for fundamental credits in Ireland,” the agency said in a statement.
All structured finance transactions backed by Irish receivables which are already subject to a maximum SF rating of A1 and currently rated above A3 are likely to be downgraded to a maximum rating of A3, it added.
Moody’s said was also likely to downgrade covered bond ratings backed by Irish receivables whose senior-most tranche ratings currently exceed A3.
(Reporting by Wayne Cole)