Moody's likely to cut Bank of Ireland subordinated debt

Moody's Investors Service said that if Bank of Ireland's exchange offer occurs on the announced terms, it would likely classify this transaction as a distressed exchange and downgrade the affected securities to Ca. The ratings would then potentially be upgraded shortly afterwards to the rating level for the bank's dated subordinated securities.

The bank plans to exchange dated subordinated debt for government guaranteed senior debt at a substantial discount to par.

The bank is rated A1/Prime-1 for bank deposits and senior debt. All of its ratings are on review for possible downgrade.

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