Fitch affirms four Australian banks

Fitch Ratings said it affirmed the long-term issuer default ratings of four Australian mid-sized banks, including Suncorp-Metway Ltd. at A+, ING Bank (Australia) Ltd. at A, Bendigo and Adelaide Bank Ltd. at A and Bank of Queensland Ltd. at A-.

The outlooks are stable.

The agency said it also affirmed the banks' other ratings.

“The banks operate simple business models with a focus on mortgage lending. We expect modest earning volatility through the cycle,” Fitch said in a news release.

“Conduct and compliance risk remains elevated for Australian banks, with a Royal Commission into misconduct in the sector currently underway. Australia's mid-sized banks have largely avoided the scrutiny of the Royal Commission, which should limit reputational damage for these entities relative to the larger banks.”

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