Bulletin Moody's puts Australia's big four banks on review for downgrade, outlook negative
SYDNEY?In a blow to the Australian banking industry, ratings firm Moody's Investors Service unexpectedly placed the country's four largest banks on review for a possible downgrade Wednesday with an eye on their dependence on global lending markets.
A downgrade from their current investment grade rating of Aa1?one notch below Moody's top rating?could increase their lending costs even as they worry that Australia's rising interest rates will crimp profitability. The Reserve Bank of Australia has been raising rates to dampen inflation, a move that has slowed credit growth and crimped industries outside the hot resources sector.
