S&P: Major Aussie banks not at risk of downgrade amid pandemic
|The US-based ratings agency S&P Global said in its latest report on Wednesday, credit ratings of most Australian banks are not at risk of a downgrade, in the face of the coronavirus crisis.
Key takeaways
“Expect credit losses at banks in 2020 to more than triple from 2019 levels as the pandemic disrupts business.
Our forecast that the Australian economy will strongly rebound toward the end of the current calendar year following a significant downturn underpins our analysis.
Warned of a more severe and longer-lasting downturn, potentially due to a sharp fall in property prices and materially weaker economic outlook, would trigger downgrades for banks.”
AUD/USD breaches 0.6100
AUD/USD has come under fresh supply and drops back below the 0.6100 level amid a renewed risk-aversion wave that boosts the haven demand for the greenback across the board.
At the press time, the Aussie trades at 0.6080, down 0.86% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.