Fitch Downgrades Irish Banks' IDRs; Upgrades 3 VRs

Fitch Ratings has downgraded Bank of Ireland's (BOI) and Bank of Ireland UK plc's (BOI UK) Long- and Short-term Issuer Default Ratings (IDR) to 'BB+'/'B' from 'BBB'/ 'F2', and Allied Irish Banks plc's (AIB) and AIB UK's (AIBUK) Long- and Short-term IDRs to 'BB'/ 'B' from 'BBB'/'F2'. The Outlook for the Long-term IDRs are Positive.

At the same time, Fitch has upgraded BOI's and BOI UK's Viability Rating (VR) to 'bb+' from 'bb-' and AIB's VR to 'bb' from 'b+'.

The rating actions are in conjunction with Fitch's review of sovereign support for banks globally, which the agency announced in March 2014. In line with its expectations announced in March last year, and communicated regularly since then, Fitch believes legislative, regulatory and policy initiatives have substantially reduced the likelihood of sovereign support for US, Swiss and European Union commercial banks. Following the revision of our expectation for state support, the IDRs are now driven by these banks', or their parents' VRs.

The rating actions are also part of a periodic portfolio review of the Irish banking groups rated by Fitch.