(6 June 2006 – Europe) Standard & Poor’s has assigned a AA-/Stable/A-1+ ratings to Westpac’s European operation.”The ratings on Westpac Europe are equalised with those of its parent, WBC, which provides explicit support to its newly created subsidiary through operational and risk transfer arrangements,” S&P financial services credit analyst Michael Vine said.
The ratings agency said Westpac Europe played an important strategic role in servicing Westpac’s European clients, offering foreign exchange, capital markets, and treasury and lending services to wholesale corporate and financial institution clients.
Westpac Europe has licensed bank status in the European Economic Area.
S&P said Westpac Europe was financially well structured for the risk it assumed with its operational and strategic linkages with the UK branch of Westpac.
“Starting capital is A$50 million, with further liquid securities funded by a loan from WBC. Economic and credit risk arising from lending business will be minimised through explicit support from WBC, while market and credit risk from non lending business will be minimised by the transfer of risk to WBC through matching transactions,” S&P said.