S&P gives Westpac Banking notes BBB-

S&P said it gave Westpac Banking Corp.’ planned Westpac capital notes 9 BBB-.

“We rate WCN9 four notches below the group's stand-alone credit profile (SACP) of a. The starting point of the group SACP reflects our view that the Australian government's support for Westpac Banking (WBC; AA-/stable/A-1+) and other Australian banks–if needed–would be unlikely to extend to hybrid capital instruments issued by the banks,” the agency said in a press release.

S&P said it drops a notch for subordination, two for risk of partial or untimely payment and another for a nonviability contingent capital feature that would require WBC to convert all or a proportion of the notes into ordinary shares or write them off if a nonviability trigger event occurred.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.