Australian banksAustralian Property

Now Moody’s downgrades the Dumb Bubble

David Llewellyn-Smith
Tuesday, 20 June 2017
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Drip, drip, drip. The Dumb Bubble cops another downgrade in Australia:

Moody’s Investors Service has today downgraded the Baseline Credit Assessments (BCAs), long-term ratings and Counterparty Risk Assessments (CRAs) of 12 Australian banks and their affiliates, reflecting elevated risks in the household sector which heighten the sensitivity of the banks’ credit profiles to an adverse shock. These elevated risks have been captured in Moody’s Macro Profile for Australia, which has been lowered to “Strong” from “Very Strong”.

At the same time, Moody’s has affirmed the BCAs, long-term ratings and CRAs of another six Australian banks and their affiliates, reflecting the balance sheet buffers and resilience to potential shocks for these banks.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.