(5 December 2011 – New Zealand) Much like their Australian parent companies, New Zealand’s banks have shrugged off a rating downgrade from Standard & Poor’s.The credit rating agency yesterday downgraded Australia’s big four banks, and by extension their New Zealand subsidiaries, after changing the way it assesses bank risk.
ANZ, Commonwealth, National Australia Bank and Westpac were dropped from AA to AA-, as were New Zealand units ANZ National, ASB, BNZ and Westpac.
ANZ’s finance unit UDC was also dropped from AA to AA-.
ASB Bank said the change wouldn’t make a difference to its funding costs.
ASB Bank general manager of treasury, Nigel Annett said at this point (ASB) does not expect the rating adjustment to have any material impact on our funding plans or expected pricing of new [bond] issuance.
”We remain focused on increasing customer deposits and long-term wholesale debt, and reducing our use of offshore short-term borrowing,” he said. ”ASB also continues to benefit from the global strength of our parent company.”
BNZ treasurer Tim Main said the rating change was driven by changes in S&P’s global methodology rather than factors particular to the bank.
”The rating of AA- continues to reflect BNZ’s strong ability to repay principal and interest in a timely manner,” he said.