Fitch places major Australian banks on rating watch negative
2012-01-30 16:59:56
Fitch Ratings on Monday placed four major Australian banks' ratings on review for possible downgrade, citing weaker funding profile.
The agency said it placed long-term Issuer Default Ratings of Commonwealth Bank of Australia, National Australia Bank Limited, Westpac Banking Corporation and Australia and New Zealand Banking Group on Rating Watch Negative.
Fitch views the Australian major banks' ratings as under some pressure at their current levels. Further, banks are subject to uncertain macroeconomic environment as well as evolving regulatory regimes.
The agency expects that any downgrades of the four major Australian banks' ratings are most likely to be limited to one notch with those entities currently rated at 'AA' most at risk. Also, Fitch expects to resolve the Rating Watch Negative within a short time frame and will incorporate an updated view of Australian banks' strengths, weaknesses and trends.