Moody’s has downgraded a dozen Australian banks

http://www.smh.com.au/business/banking-and-finance/moodys-downgrades-australian-banks-credit-rating-20170619-gwuafj.html

Credit rating agency Moody’s has downgraded a dozen Australian banks, including the big four, citing increased risks in the nation’s increasingly indebted households.

Moody’s stripped the big four banks – the Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Westpac Banking Corporation (Westpac) – of their Aa2 long-term rating and placed them on the next level down at Aa3, although it did not alter their short term ratings.

Other smaller banks were also downgraded including Bendigo and Adelaide Bank, Members Equity Bank Limited and Credit Union Australia Limited.

The big four banks had been on a negative outlook but that had now been changed to stable Moody’s said in a statement released on Monday night.

“In Moody’s view, elevated risks within the household sector heighten the sensitivity of Australian banks’ credit profiles to an adverse shock, notwithstanding improvements in their capital and liquidity in recent years,” the statement said.

Moody’s did not think a “sharp housing downturn” was a “core scenario” the risk posed by increasing household debt had to be considered when weighing the ratings of Australian banks.

“In Moody’s assessment, risks associated with the housing market have risen sharply in recent years. Latent risks in the housing market have been rising in recent years, because significant house price appreciation in the core housing markets of Sydney and Melbourne has led to very high and rising household indebtedness,” the statement said.

———-

oops?

“risks associated with the housing market have risen sharply in recent years.”

a bubble by any other name..

“Moody’s stripped the big four banks – the Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Westpac Banking Corporation (Westpac) – of their Aa2 long-term rating and placed them on the next level down at Aa3, although it did not alter their short term ratings. Other smaller banks were also downgraded including Bendigo and Adelaide Bank, Members Equity Bank Limited and Credit Union Australia Limited.”

my bank is in there..

401

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~ by seeker401 on June 21, 2017.

One Response to “Moody’s has downgraded a dozen Australian banks”

  1. Reblogged this on World4Justice : NOW! Lobby Forum..

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