ANZ, CBA, Westpac Outlook Cut to Negative by Moody’s
Three of Australia’s four biggest banks had their ratings outlook cut to negative by Moody’s Investors Service as the economy slows and bad debts rise.
Australia & New Zealand Banking Group, Commonwealth Bank of Australia and Westpac Banking Corp. were downgraded from a stable ratings outlook today. The New York-based ratings service revised the rating outlook for National Australia Bank Ltd. to negative in August last year. The banks remain “solidly positioned within the Aa” category, Moody’s said, while government-guaranteed bank obligations remain Aaa with a stable outlook.
“The negative outlook reflects the potential for the deepening global economic downturn to have a protracted impact on the banks’ asset quality and earnings,” said Patrick Winsbury, vice president at Moody’s in Sydney. “All three banks continue to have strong credit profiles and benefit from a very high level of support from the Australian government.”
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