Can't see where anyone has posted it, so this is from today's...

Can't see where anyone has posted it, so this is from today's Australian:

"Concerns over Suncorp's property exposures
Katherine Jimenez | September 18, 2008

INVESTOR unease is building over Suncorp's property exposure and funding ability, despite credit rating agency Standard & Poor's yesterday affirming the bank's A-plus rating.

Suncorp's shares, which have been heavily dumped in the past two weeks, yesterday dived another 2.3 per cent, or 29c, to $8.86.

It hit an intraday low of $8.35 before bouncing back after S&P maintained its rating.

But the agency revised its outlook from positive to stable due to the continuing financial market disruption, which it said had "lessened the likelihood of a rating upgrade".

There is deep-rooted suspicions in the market about Suncorp, with one source saying there was "concern about their exposure to property and whether they had adequate provisions against it".

Suncorp has so far remained silent on its exposure to troubled Queensland property group Raptis Group but it is estimated to be more than $100 million. Questions are also being asked about the bank's funding requirements.

Following the St George and Westpac merger, Suncorp will be the only major bank with a single A-rated status.

"When St George accepted the Westpac offer I think it really highlighted to people that there may be funding issues for lower-rated, smaller financial organisations," said one analyst.

"If you put the two together -- property, about 23 per cent of the loan book, and that they're not double AA rated -- then you can potentially have those sort of concerns going around."

He also highlighted that General Property Trust's unit price was "now back to what you could buy it for in 1983".

"All of the performance in the General Property Trust since 1983 has been wiped out in the last 12 months," he said.

"Now that's not just a little setback in the property market."

But a more alarming prediction came from another banking source who said: "If we have another six to 12 months of this current funding environment, I think Suncorp is in trouble".

If Suncorp struggles to get funding, he said, the three options for the bank were to slow down growth, sell assets or the more drastic measure of a demerger.

QBE Insurance has made no secret it is interested in Suncorp but with another partner taking the banking operations.

CBA is circling the HBOS-owned BankWest but if nothing happens, it could switch its attention to the Suncorp banking operations.

A spokesman for Suncorp managing director John Mulcahy said: "We hold very high levels of security across our lending book and also a very conservative loan to value ratios.

"It's a sector (property) that we continue to monitor closely but we're comfortable with our exposure."

He also said Suncorp was on track to meet its funding requirements for the year and it raised another $450 million last week."