Moody’s has downgraded the Baseline Credit Assessments (BCAs) Moody’s down grade in line with the sector
Moody’s down grade in line with the sector: Moody’s has downgraded the Baseline Credit Assessments (BCAs), long-term ratings and Counterparty Risk Assessments (CRAs) of 12 Australian banks and their affiliates, reflecting elevated risks in the household sector which heighten the sensitivity of the banks’ credit profiles to an adverse shock. These elevated risks have been captured in Moody’s Macro Profile for Australia, which has been lowered to “Strong +” from “Very Strong. BEN’s long-term credit rating was downgraded by Moody’s by one notch to A3/Stable and the short-term rating by one notch to P-2. However, this change is not expected to have a material impact on the availability or cost of funding for BEN. During H1FY17, the bank reported an after tax statutory profit of $209.0 million, while the underlying cash earnings rose 0.4% year on year (yoy) to $224.7 million. The bank’s net interest margin witnessed pressure as it was impacted by additional liquidity for the Keystart portfolio acquisition, while the increasing competition remains a concern despite the group’s focus on customers.
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