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Rural Bank Ltd. Jul 10

  • ID: 1857978
  • July 2010
  • Standard & Poors
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Strong rural-market knowledge and customer relationships Very low loan losses Good interest margin Broad geographic coverage Smaller balance sheet relative to rated peers' Competitive higher-risk rural banking market Indirect exposure to Australian banking system's dependence on wholesale funding The issuer credit ratings on Rural Bank Ltd. (RBL) reflect the bank's very low loan losses, strong rural-market expertise, good interest margins, and geographic diversification within Australia. RBL is a subsidiary of Bendigo and Adelaide Bank Ltd. (BEN; BBB+/Stable/A-2). The ratings on RBL are moderated by the bank's smaller balance sheet compared with rated peers' and its exposure to the rural lending sector, which is very competitive and exhibits higher credit risk than residential home lending. For the half-year ended Dec. 31,...

Companies mentioned in this report are: Rural Bank Ltd.
Action: Review

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: Full Analysis

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Rural Bank Ltd.

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