S&P marks banks in the region on credit fundamentals
(12 July 2005 – Australia/Asia) Ratings agency Standard & Poor’s has run its credit profile rule across banks in the Asia Pacific region to ascertain which banks would likely require external assistance in the event of financial distress.
S&P said it had assigned what it terms Bank Fundamental Strength Ratings (BFSR) on 110 banks in the Asia Pacific region as a complement to its usual counterparty credit ratings.
Major banks in Australia, New Zealand and Singapore were awarded the highest rating of B+ as they were located in stable banking systems. Australian regional banks, Bank of Queensland, Bendigo and Adelaide Bank were rated C+.
The next group, rated B, contained banks in Japan, Malaysia and Taiwan.
The lowest rated banks came from China, India, Indonesia, the Philippines and Thailand. Banks in these countries were given a D+ or D BFSR rating.
S&P said it had introduced the BFSR system in response to "considerable" interest from investors for such a rating.
Major banks in Australia, New Zealand and Singapore were awarded the highest rating of B+ as they were located in stable banking systems. Australian regional banks, Bank of Queensland, Bendigo and Adelaide Bank were rated C+.
The next group, rated B, contained banks in Japan, Malaysia and Taiwan.
The lowest rated banks came from China, India, Indonesia, the Philippines and Thailand. Banks in these countries were given a D+ or D BFSR rating.
S&P said it had introduced the BFSR system in response to "considerable" interest from investors for such a rating.
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