S&P downgrades Bank of Ireland outlook to ‘negative’ from ’stable’ citing debt hurdles

S&P downgrades Bank of Ireland outlook to negative

DUBLIN — Credit ratings agency Standard & Poor’s has downgraded its outlook for Bank of Ireland from stable to negative, citing the weak Irish economy and heavy state supports.

Shares in Bank of Ireland fell 4 percent to euro0.69 ($0.89) after the agency said it no longer expects the bank to recover its A- stand-alone credit profile within the next two years.

The agency reaffirmed its B++ stand-alone rating. It noted that Bank of Ireland enjoys an exceptional level of state supports, including a growing government shareholding, and would struggle to wean itself off taxpayer backing and return to profits.

S&P analyst Giles Edwards said Bank of Ireland faces “faces considerable challenges to restoring its (credit profile) to the A- rating level within the foreseeable future.”