“one level above speculative or “junk” status..”

More details are emerging about Sean Fitzpatrick and the loans he received when chairman of Anglo Irish Bank. RTÉ notes the Irish Times report on the loans from Irish Nationwide while the original report adds this on debt and credit ratings

The new details about Mr FitzPatrick’s loans emerged as Irish Nationwide had its debt rating – an indication of its ability to repay its borrowings – downgraded by two notches to one level above speculative or “junk” status yesterday. A drop to “junk” status would stop many large companies investing in the building society’s bonds.

International credit rating agency Moody’s also reduced Irish Nationwide’s rating to a level representing “modest” financial strength, “potentially requiring some outside support at times”. The agency said the outlook for the building society was “negative”, meaning it may downgrade the lender’s ratings again soon.

Update RTÉ reports that the Chairman of Irish Nationwide, Dr Michael Walsh, has resigned unexpectedly.

Pete Baker