Moody’s might lift Ulster Bank

Moody's Investors Service said it placed on review for upgrade the Baa2 long-term deposit rating and the Baa3 long-term issuer rating of Ulster Bank Ireland DAC.

The agency also placed on review for upgrade the bank’s baa3 adjusted baseline credit assessment as well as its Prime-2 short-term deposit rating, Prime-3 short-term issuer rating and long- and short-term counterparty risk assessments of A3(cr)/Prime-2(cr).

Moody’s said the action follows the Jan. 30 action on Royal Bank of Scotland plc, reflecting a view on the likely direction of the group's subsidiaries' ratings, following the implementation of forthcoming ring-fencing regulations.

The review on the ratings of Ulster Bank Ireland, which is incorporated in the Republic of Ireland, was driven by Moody's expectation that the bank will remain an integral part of the ring-fenced banking subgroup, which will have a stronger credit profile as it will retain mostly retail and SME activities and have a more deposit-based funding profile, the agency explained.

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