Elders Rural given ratings upgrade
(22 August 2007 – Australia) Elders Rural Bank has been given a credit rating upgrade by Standard & Poor’s Ratings Services.
S&P announced it had raised its long-term issuer credit rating on Elders to BBB from BBB-. The bank’s short-term credit rating has been raised to A-2 from A-3.
The ratings agency said its rating outlook for the bank was stable.
Elders Rural Bank is a joint venture between Futuris Corporation Limited (the parent company of Elders Ltd) and Bendigo Bank.
S&P said the rating upgrades reflected strong and sustained growth in Elders’ assets, income and capital base in recent years, which had been achieved without a material deterioration in asset quality, despite the drought.
S&P pointed to the bank’s very low loan losses, strong rural market expertise, good interest rate margin management and geographic diversification within Australia.
Elders Rural Bank chief executive Paul Hutchinson said the upgraded credit ratings reflected the strong profitability, growth and risk management philosophy employed by the bank.
Elders Rural Bank was established in 2000. The bank posted a net profit after tax of A$36 million for the year to June 2007.
The bank has lent more than A$3.2 billion to Australian farmers.
The ratings agency said its rating outlook for the bank was stable.
Elders Rural Bank is a joint venture between Futuris Corporation Limited (the parent company of Elders Ltd) and Bendigo Bank.
S&P said the rating upgrades reflected strong and sustained growth in Elders’ assets, income and capital base in recent years, which had been achieved without a material deterioration in asset quality, despite the drought.
S&P pointed to the bank’s very low loan losses, strong rural market expertise, good interest rate margin management and geographic diversification within Australia.
Elders Rural Bank chief executive Paul Hutchinson said the upgraded credit ratings reflected the strong profitability, growth and risk management philosophy employed by the bank.
Elders Rural Bank was established in 2000. The bank posted a net profit after tax of A$36 million for the year to June 2007.
The bank has lent more than A$3.2 billion to Australian farmers.
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