Fitch cuts Suncorp-Metway view to negative

Fitch Ratings said it affirmed and removed from Rating Watch evolving Suncorp-Metway Ltd.'s

long-term issuer default rating at A+, short-term issuer default rating at F1, unguaranteed senior unsecured debt at A+/F1, government-guaranteed senior unsecured foreign-currency debt at AA+ and local-currency debt at AAA, subordinated debt at A and hybrid instruments at A-.

The outlook has been revised to negative.

The downgrade in outlook follows news that the company has seen a significant increase in bad debts, which will affect this year's profits, Fitch said.

With signs that the Queensland and Australian economies are facing significant challenges, risks to asset quality are clearly on the downside, the agency added.

The negative outlook reflects concerns about the deteriorating outlook and rapid deterioration in the bank's asset quality, Fitch added.

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