MELBOURNE (Standard & Poor's) June 27, 2008Standard & Poor's Ratings Services said today that it had affirmed its ratings on Australia-based specialist rural lender Elders Rural Bank Ltd. (ERB; BBB/A-2). At the same time, the rating outlook was revised to negative from stable. The outlook revision reflects the recent emergence of a range of operating difficulties faced by Futuris Corp. Ltd. (not rated), which owns 50% of ERB. The rating affirmation reflects Standard & Poor's expectation that at the 'BBB' rating level, ERB's credit profile is adequately protected from Futuris' current operating difficulties. The protection stems from regulatory oversight, the 50% ownership by Bendigo and Adelaide Bank Ltd. (BBB+/Stable/A-2), and a supportive corporate governance framework under a joint-venture agreement between...
Companies mentioned in this report are:
- Rural Bank Ltd.
- Bendigo and Adelaide Bank Ltd.
Action: Outlook: Negative
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Research type: News
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