Late yesterday, Moody’s downgraded the credit rating of 12 Australian banks, including the 4 major Australian banks, citing elevated risks in the household sector as the cause, notes the analysis team at NAB.
“Specifically, the major banks (ANZ, CBA, NAB and Westpac) have their long term ratings cut from Aa3 to Aa2, while their BCAs were downgraded from a2 to a1. Short term ratings are unchanged. This cut comes one month after S&P reaffirmed credit ratings of the 4 major Australian banks but lowered long term issuer credit ratings on 23 Australian financial institutions on the back of elevated residential housing risks. Today, stock prices of the “Big Four” banks dipped average –0.4% today but credit spreads were relatively unchanged.”
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 securities. 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 Forex 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.