Moody's credit rating agency has warned Australia's large banks that they may have their high ratings downgraded as prolonged low interest rates in the country continue to put pressure on the banks' credit profiles. At present, Australia's banks sit within an elite group of AA rated banks which include Scandinavian and Canadian lenders, HSBC, Wells Fargo and BNY Mellon. The Australian Prudential Regulation Authority (APRA) said it was concerned about a possible downgrade of its AAA rating, which is one notch above investment grade. Last week, National Australia Bank, Westpac, ANZ and Commonwealth Bank had their ratings downgraded by Standard & Poor's to AA- with a negative outlook.
Moody's credit rating agency has warned Australia's large banks that they may have their high ratings downgraded as prolonged low interest rates in the country continue to put pressure on the banks' credit profiles. The Australian Prudential Regulation Authority (APRA) said it was concerned about a possible downgrade of its AAA rating, which is one notch above investment grade. Last week, National Australia Bank, Westpac, ANZ and Commonwealth Bank had their ratings downgraded by Standard & Poor's to AA- with a negative outlook.