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Elders Rural Bank Ltd. Outlook Revised To Neg On Fortis' Operating Problems; Ratings Affirmed Jun 08

  • ID: 1857668
  • June 2008
  • Standard & Poors
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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: Affirmed
Action: Outlook: Negative

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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- Rural Bank Ltd.
- Bendigo and Adelaide Bank Ltd.

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