CANBERRA: Credit rating agency S&P Global said on Wednesday that Australia’s rising economic pressures could see it cut the ratings on most of the country’s banks by one notch and in a few cases by two notches.
It said the jump in private sector debt and residential property prices in Australia in recent years indicated rising risks for banks and finance companies, with losses likely if there was a sharp drop in the housing market. S&P said some institutions could avoid a downgrade thanks to support from large parent organisations though at least three, including Auswide Bank, MyState Bank and People’s Choice Credit Union, could face two-notch cuts.
