S&P also put the banks' unsecured and nondeferrable
subordinated debt (NDSD) -- which have lower priority than other bonds if the company goes bankrupt -- rating "on CreditWatch with negative implications.
Also, we lowered our issue rating on Temirbank's nondeferrable
subordinated debt to 'CCC' from 'CCC+'.
17 December 2010 - S&P today cut its rating on Allied Irish Banks' (ISE:ALBK) lower tier 2 securities to CCC from B citing a "clear and present risk" of a restructuring of this nondeferrable
Interest collections are then used to pay accrued interest due to the nondeferrable
tranches, the class A-1, A-2 and B notes, before being used to amortize the class A-1 notes as a result of the failing class A/B overcollateralization ratio; this is a cash diverting structural protection feature of the CDO.
30 September 2010 - S&P yesterday slashed to CCC from B its rating on Anglo Irish Bank's lower tier 2 securities, citing a "clear and present risk" of a restructuring of this nondeferrable
dated subordinated debt.
Overall capital levels are still tight and encumbered by capital deployed on the bank's subsidiaries, while its issuance of short-term nondeferrable
preference shares does not provide any equity credit, according to Fitch.
While the business is highly seasonal, and somewhat mature, customized production and the nondeferrable
nature of demand contribute to fairly stable cash flows, good liquidity, and minimal inventory risk.