(18 April 2011 – Australia) Australia’s big four banks had their double A ratings affirmed by Fitch, reflecting the dominant market position and strong profitability.The outlooks for Commonwealth Bank of Australia Ltd, National Australia Bank Ltd and Westpac banking Corporation would remain at ‘Stable’ and would remain at ‘Positive’ for ANZ Banking Group Ltd, Fitch said in a statement.
“The ratings reflect the major Australian banks’ dominant market position in their home markets, strong profitability, low impaired asset levels and solid and improving liquidity and capital positions,” Fitch said.
The ratings agency reported that a prolonged dislocation of global wholesale funding markets may lead to rating downgrades, with the Australia banking system’s reliance on short-term wholesale funding from offshore markets also a cause for concern.