This is the first time Moody's has upgraded the lender to investment grade category since its first rating of the company in 2016.The last time the bank was rated at this level was 2009.
Moody's said the decision improve the bank's rating and outlook was due to the planned acquisition of €7.6 billion in residential mortgages from Ulster Bank.The rating agency also said the bank will have a bigger share of the Irish mortgage market after the deal, and will benefit from greater diversification, a broader foundation to improve profitability and a solid deposit-based funding profile.
Eamonn Crowley, Permanent TSB's chief executive, said the move was a very welcome decision and one which underlines the extent of Permanent TSB's progress in recent years. "We are pleased to see the growing strength of our competitive franchise, the transformational nature of our acquisition of Ulster Bank personal and SME banking businesses and solid, sustained improvements in our business model and funding profile being recognised in this way," the CEO added.
Permanent TSB also returned to the ISEQ 20 index of shares earlier this month for the first time in over a decade.The bank replaced Hibernia REIT on the index after the propety company was taken private in June.