Fitch rates Bank of Ireland (UK) ‘A-‘

(The following statement was released by the rating agency)

Oct 27 – Fitch Ratings has assigned Bank of Ireland (UK) Plc (BOIUK)
ratings of Long-term Issuer Default (IDR) ‘A-‘, Short-term IDR ‘F1’, Individual
‘C/D’ and Support ‘1’. The Outlook is Negative. At the same time, Fitch has
assigned Long-term ‘A+’ and Short-term ‘F1’ ratings to BOIUK’s guaranteed
deposits and guaranteed interbank liabilities.
BOIUK’s Outlook and ratings are equalised with those of its parent, Bank of
Ireland (BKIR.I: ) (BOI). The IDRs and Support rating of BOIUK are underpinned by
an extremely high probability of potential support from BOI and reflect the
fact that BOIUK is fully owned by and is strategically important to BOI. The
alignment of BOIUK’s Individual rating with that of BOI reflects a high degree
of integration between the parent and the subsidiary.
The ratings on BOIUK’s guaranteed deposits and guaranteed interbank liabilities
apply to the eligible liabilities under the eligible liabilities guarantee
(ELG) scheme, in which BOIUK is a participating institution. The guarantee,
provided by Ireland (‘A+’/Negative/’F1’), is subject to the terms of the
scheme. Changes in the ratings of Ireland, or changes in the scheme, may be
reflected in the ratings of guaranteed deposits and guaranteed interbank
liabilities. Regardless of their guarantee status under the ELG scheme;
deposits with BOIUK will be protected in accordance with the UK’s Financial
Services Compensation Scheme applicable to UK incorporated banks and building
societies.
BOIUK is a newly established subsidiary of BOI. BOIUK is fully authorised by
the Financial Services Authority and capitalised at GBP1.7bn. On 1 November
2010, BOI will transfer selected UK businesses, including a joint venture with
the Post Office, Post Office Financial Services, the branch business in
Northern Ireland and UK business banking, to BOIUK.
According to its business plan, BOIUK is expected to have net customer loans of
about GBP15bn at end-2010, including GBP9.2bn of residential mortgages,
GBP0.5bn of credit card balances and GBP5.3bn of commercial loans. Total assets
are projected to be about GBP17.5bn and are expected to be almost fully funded
by customer deposits (with a majority sourced through the Post Office joint
venture) and capital.
Contact:
Primary Analyst
Svetlana Petrischeva,
Director
+ 44 (0) 207 682 7131
Fitch Ratings Limited
101 Finsbury Pavement, London, EC2A 1RS
Secondary Analyst
Matthew Taylor
Senior Director
44 (0) 20 7417 4345
Committee Chairperson
Mark Young
Managing Director
+ 44 (0)20 7417 4268
Media Relations: Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364, Email:
[email protected]; Hannah Warrington, London, Tel: +44 (0) 207
417 6298, Email: [email protected]
Additional information is available at www.fitchratings.com.
Applicable criteria, “Global Financial Institutions Rating Criteria”, dated 16
August 2010, are available at www.fitchratings.com.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
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