Moody’s downgrades Australian bank credit ratings

From Mathew Dunckley and Clancy Yeates at SMH:

Credit rating agency Moody’s has downgraded a dozen Australian banks, including the big four, citing increased risks in the nation’s increasingly indebted households.

Moody’s stripped the big four banks – the Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Westpac Banking Corporation (Westpac) – of their Aa2 long-term rating and placed them on the next level down at Aa3….

“In Moody’s assessment, risks associated with the housing market have risen sharply in recent years. Latent risks in the housing market have been rising in recent years, because significant house price appreciation in the core housing markets of Sydney and Melbourne has led to very high and rising household indebtedness,” the statement said.

Source: Moody’s downgrades Australian bank credit ratings

2 thoughts on “Moody’s downgrades Australian bank credit ratings

  1. pussboy says:

    bubble, about to blow

    • Mavis says:

      Was looking like a bubble – yes, but now definitely not a bubble, anylonger.

      Refer : all the macro-prudential measures to limit LVR and proportion of interest-only loans, the recent interest rate hikes by the banks on mortgages and reduced Chinese involvement because of their capital controls, and still forecasts of excess supply in parts of the Eastern states, because of continued construction.

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