Powered by MOMENTUM MEDIA
subscribe to our newsletter
S&P raises MyState Bank rating to BBB+

S&P raises MyState Bank rating to BBB+

A global ratings agency has raised its long-term credit issuer rating of MyState Bank to ‘BBB+’ with a negative outlook, from ‘BBB’ with a developing outlook, based on an improved risk profile.

In its report, S&P Global Ratings noted that Tasmania-based MyState Bank’s continuing evolution of its risk management practices in recent years has resulted in an improved risk profile for the bank.

“MyState Bank’s strengthened executive team is equipped to manage the risks associated with the bank’s continued accelerated loan growth, which reached 1.4 times that of the Australian banking system as a whole in fiscal 2016,” S&P said.

The negative outlook assigned to MyState Bank’s raised ‘BBB+’ rating is consistent with the moves by S&P earlier this year to revise its outlook on the rating of banks in Australia to “negative”, citing a potential scenario of a one-in-three chance of increasing property prices and private sector debt.

S&P’s base-case re-affirms the expectation that growth in private sector debt and property prices will moderate and remain relatively low in the next two years, and would result in the outlook on the rating of Australian banks being revised to ‘stable’.

MyState Limited’s managing director, Mr Melos Sulicich, said S&P’s decision to raise MyState Bank’s credit rating to ‘BBB+’ is testament to the group’s sustainable growth strategy which is underpinned by contemporary risk management practices and a very strong balance sheet.

[Related: Tasmanian bank launches new digital offering]

S&P raises MyState Bank rating to BBB+
mortgagebusiness

Latest News

The proportion of income required to service a home loan decreased nationwide over the September quarter 2018, according to joint research f...

Delinquencies underlying Australia’s mortgage portfolio increased over the year to September 2018 off the back of out-of-cycle interest ra...

The financial services giant has announced the launch of a new website designed to serve as a “one-stop shop” for financial education. ...

FROM THE WEB
podcast

LATEST PODCAST: Changing faces and bank growth slowdown

Is enough being done to ensure responsible lending?