The 'AA/Stable/A-1+' issuer credit ratings on Australia-based major bank Westpac Banking Corp. (Westpac), reflect the bank's strong financial profile, which has benefited from the strong asset quality, improved operational efficiency, earnings diversity, and adequate liquidity. The bank is well placed to contend with a higher level of bad debts should there be a moderation in the credit cycle. Key factors moderating the ratings are competitive pressures, tightening interest margins, and the moderate capitalization affecting the Australian banking industry. Another factor moderating the rating is the limited opportunity for retail funding growth across the industry, which heightens Westpac's reliance on wholesale funding markets. In the year ended Sept. 30, 2007, Westpac showed solid growth in earnings and assets despite the Australian...
Companies mentioned in this report are:
- Westpac Banking Corp.
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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included. SHOW LESS READ MORE >