AIB has triggered credit event, says Isda determinations committee

Isda’s determinations committee has ruled that Allied Irish Bank has triggered a restructuring credit event following its recent debt exchange. According to Isda’s website, it was unanimously decided that a credit event auction should be held, with the date of the restructuring credit event given as 9 June.

On 16 May Standard & Poor's lowered its rating on AIB's lower tier-two debt to D from CC following the bank's tender offer last week for its dated and perpetual and subordinated notes, perpetual reseverse capital instruments, and perpetual preferred securities commencing 13 May and ending 13 June. S&P said at the time that it considered this offer a distressed exchange and 'tantamount to default'.

Traders point out that there will be no senior unsecured AIB bonds to deliver into the credit default swap auction, as all were extended to much longer maturities.