Powered by MOMENTUM MEDIA
subscribe to our newsletter

QTMB’s merger plans will have ‘limited impact’: Moody’s

Moody’s Investors Service has affirmed its credit ratings for QT Mutual Bank (QTMB) following its announcement last week that it plans to merge with another lender.

The credit ratings agency affirmed QMTB’s long-term issuer rating of A3, its baseline credit assessment of a3, its adjusted baseline credit assessment of a3, its counterparty risk assessment of A2/ Prime-1 and its short-term issuer rating of Prime-2.

The affirmation of QTMB’s ratings follows the bank’s announcement that it plans to merge with the Royal Automobile Club of Queensland (RACQ).

Moody’s noted that if the merger is successful, it expects it will have “limited impact” on QTMB’s financial profile, as the bank would operate as a banking subsidiary of the RACQ and likely maintain all existing and future generated capital.

“As a result, Moody’s expects QTMB to maintain its strong financial position, as reflected by its very strong asset quality and capital metrics,” it said.

Advertisement
Advertisement

PROMOTED CONTENT


Moody’s does not expect the merger will increase QTMB’s credit risk appetite in an effort to promote profitability and growth, given the similar strategies of the non-major and the RACQ.

“Both are Queensland-based, customer-owned organisations that focus on returning value to members rather than maximising shareholder profits,” it said.

[Related: Pepper receives top ratings for RMBS]

QTMB’s merger plans will have ‘limited impact’: Moody’s
mortgagebusiness

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.