Moody’s has altered its review status on Permanent TSB’s baseline credit assessment, changing it from review for downgrade to review with direction uncertain.

The change in the review status on the caa3 assessment comes after the European Commission approved in principle the bank's restructuring plan. Other factors affecting the review status also included the ECB's Single Supervisory Mechanism endorsement of the recapitalisation plan, and recent financial results from the bank that were more positive.

The same watch status also applies to PTSB’s subordinated programme, which was also previously set as review for downgrade.

But the bank’s deposit ratings and senior debt ratings were still on review for downgrade, with Moody’s extending it. Moody’s said the ratings are not only driven by the BCA outcome, but also by the advanced loss given failure (LGF) analysis, which Moody’s recently introduced as part of its new banks methodology.

Meanwhile, PTSB’s junior subordinated debt rating, currently at the lowest level of (P)C, has been placed on review for upgrade.