Internet Banking


Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, General

Ratings movements by ratings Agency Standard & Poors (S&P) has been the focus for the last week. On Monday morning, S&P lowered the credit ratings on 23 local institutions that had been on negative outlook noting that “economic imbalances in Australia have increased due to strong growth in private sector debt and residential property prices in the past four years, notwithstanding some signs of moderation in recent weeks”. S&P said that financial institutions operating in Australia now face an increased risk of a sharp correction in property prices.

This increased "Economic Risk" assessment of Australia caused a credit rating downgrade of almost all (23 in total) Australian financial institutions. Ironically, the four major banks who have the greatest exposure to the housing market and property prices were spared by S&P due to the expected government support given to those banks that are “too big to fail”.

View the full newsletter (PDF, 350KB)

Source: Rural Bank


Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank – A Division of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879