Monksfield
Registered User
- Messages
- 110
The latest Fixed Medium Term Deposit fund from Aviva offers a 5 year exposure to PTSB. The AER is 3.5% while better than what is available from others would seem very unattractive for a bank rated B+ by S&P.
In fairness Aviva supplies a chart showing that PTSB's credit rating was the 14th on a 22 point scale. What it fails to make clear is that this is well below Investment Grade - it is actually the top rating in the category S&P describe as Highly Speculative. This is 4 notches below what they would rate as Investment Grade.
My main points are : the disclosure here is poor and the credit risk is under priced.
In fairness Aviva supplies a chart showing that PTSB's credit rating was the 14th on a 22 point scale. What it fails to make clear is that this is well below Investment Grade - it is actually the top rating in the category S&P describe as Highly Speculative. This is 4 notches below what they would rate as Investment Grade.
My main points are : the disclosure here is poor and the credit risk is under priced.