View more on these topics

Moody’s could downgrade BOI

Moody’s has revealed that it may downgrade Bank of Ireland credit ratings in light of its exposure to UK and Irish downturns.

The credit rating agency says it has placed BOI’s debts and securities on possible downgrade: it revealed the bank’s B- financial strength rating
and Aa2 long-term senior debt and deposit ratings are at risk

The ratings of ICS building society, BOI’s Irish mortgage lending subsidiary, has also been placed on review for possible downgrade.

Moody’s vice president and lead analyst Ross Abercromby says: “The rapid deterioration in the economic environment in Ireland and in the UK is leading to a faster than initially anticipated deterioration in asset quality in both countries and this will lead to BOI, with its large exposure in both economies,
having to substantially increase its level of provisioning.”

The agency also says the bank needs to deliver a new business plan to the
FSA in the coming weeks. “The outcome of this will also be an important part of this rating review,” says Moody’s.


Concerns rise over due diligence

An increasing number of advisers are worried that their due diligence around structured products is lacking and that they have been over-reliant on provider reputation when recommending products, says Resources Compliance.

Reverse gear

It was not long ago that Mervyn King was cautioning against the ravages of inflation. Now the D word – deflation – has been uttered. In case a 150 basis point cut to bring interest rates to their lowest level for more than half a century was not enough to convince you that the Bank of England governor had changed tack, his comments at last week’s launch of the quarterly inflation report demonstrated a dramatic U-turn.

MPC hints at further rate drops

The Monetary Policy Committee has hinted that there are further rate cuts to come in an attempt to keep the UK economy under control.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm