19 Apr 2011

Irish bank ratings downgraded

3:05 pm on 19 April 2011

Credit ratings agency Moody's has downgraded its rating of Irish banks to junk status.

Moody's downgraded the Irish Republic's sovereign debt rating last week.

On Monday, the agency downgraded the long-term bank deposit ratings of Allied Irish Banks, EBS and Irish Life and Permanent by two notches to Ba2.

Bank of Ireland was downgraded to Ba1, one notch above its rivals.

Last month, the central bank of the Republic disclosed that the cost of bailing out the bank sector could reach €70 billion.

Last year, the country needed an international bail-out worth €85 billion.

The International Monetary Fund and the European Union said on Friday that the Republic was making ''good progress'' on overcoming its economic crisis.

However, the BBC reports Moody's remains concerned about Dublin's ability to push through a restructuring of its own debts and that of the banking sector.