Moody's assigned Bank Australia Ltd. first-time long- and short-term issuer ratings of Baa1 and P-2, respectively, with a stable outlook.
The rating agency said the long-term rating reflects the bank's strong asset quality, healthy capitalization and conservative funding profile.
The rating agency also assigned the bank long- and short-term counterparty risk assessments of A3(cr) and P-2(cr), respectively. The bank's baseline credit assessment and adjusted baseline credit assessment are at "baa1", Moody's said.
Bank Australia's rating was constrained by ongoing pressure on its profitability due to the prevailing low-interest rate environment and several other factors. The bank's high concentration in the housing markets in Melbourne and Sydney also constrains its rating, the rating agency said.
