Fitch lowers Bank of New Zealand view to negative

Fitch Ratings said it affirmed the AA- long-term issuer default ratings of Bank of New Zealand and revised the outlook to negative from stable.

The bank's viability rating was not considered as part of this review, Fitch said.

The outlook revision follows similar action on the bank's parent, National Australia Bank Ltd., Fitch said.

The ratings reflect a view that there continues to be an extremely high likelihood of support from the parent bank if needed, the agency said.

Fitch said it sees Bank of New Zealand as a key and integral part of the group, providing core products and services to a market long considered core to the group.

The prospect of support is boosted by strong linkages between the Australian and New Zealand banking regulators, who Fitch said it believes would work together to ensure the stability of both financial systems.

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