MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it revised its outlook on Anglo Irish Bank Corp. Plc. to negative from stable based on the accelerating economic slowdown and an increasingly challenging operating environment.
The ratings agency also said the 'A/A-1' counterparty credit ratings on Anglo Irish Bank were affirmed.
S&P said the ratings on Anglo reflect its highly efficient business model, robust profitability, high level of internal capital generation, and prudent liquidity policy.
It added the rating affirmation reflects the expectation that Anglo's business model and underwriting process will allow it to continue to outperform in terms of credit quality and losses.
However, the margin for error for Anglo's adroit management team is small and the focus of Anglo's operations on property and construction lending leaves it particularly vulnerable to a prolonged downturn and resultant high loan losses, S&P noted. TFN.newsdesk@thomson.com npr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
The ratings agency also said the 'A/A-1' counterparty credit ratings on Anglo Irish Bank were affirmed.
S&P said the ratings on Anglo reflect its highly efficient business model, robust profitability, high level of internal capital generation, and prudent liquidity policy.
It added the rating affirmation reflects the expectation that Anglo's business model and underwriting process will allow it to continue to outperform in terms of credit quality and losses.
However, the margin for error for Anglo's adroit management team is small and the focus of Anglo's operations on property and construction lending leaves it particularly vulnerable to a prolonged downturn and resultant high loan losses, S&P noted. TFN.newsdesk@thomson.com npr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.