S&P rates Westpac notes BBB-

S&P said it assigned a BBB- rating to Westpac Banking Corp.’s proposed Westpac capital notes 4.

S&P said it rated the notes four notches below Westpac’s stand-alone credit profile of A.

The starting point of the stand-alone rating reflects a view that it is unlikely that the Australian government’s support for Westpac and other Australian banks – if required– would extend to the hybrid capital instruments, the agency explained.

The rating also considers the subordinated status of the notes, risk of partial or untimely payment and its non-viability contingent capital feature, S&P said.

The rating also take into account their status as fully compliant Basel III additional tier 1 regulatory capital under authority standards, the agency said.

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