Australia: S&P reaffirmed credit ratings on the four major banks - TDS

The research team at TDS notes that the rating agency S&P has reaffirmed credit ratings on the four major Australian banks, reflecting their expectations of likely timely financial support from the government if needed.

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“Nonetheless, these banks remain on negative outlook.  Otherwise, S&P lowered the long-term issuer credit ratings on 23 Australian financial institutions by one notch due to rising risk of economic imbalances due to strong growth in private sector debt and residential property prices in the past four years.”