Fitch may up Westpac, St. George banks

Fitch Ratings said it placed the ratings of Westpac Banking Corp. and St. George Bank Ltd. on Rating Watch positive, following news that Westpac is considering an offer to acquire the bank using Westpac shares as consideration.

On Rating Watch positive includes Westpac's long-term issuer default rating at AA- and short-term issuer default rating at F1+, along with the St. George Bank's long-term issuer default rating at A+ and short-term issuer default rating at F1.

A combined entity would command a strong presence in Australia's retail banking and fund management markets, Fitch said. There also appears to be reasonable scope for savings in the back-office, particularly where duplication exists, the agency added.

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