Fitch Ratings has assigned
The Outlook is Stable.
This issuance brings ANZ's total outstanding covered bonds to AUD13.4 billion equivalent. The bonds are due in
KEY RATING DRIVERS
The '
The covered bonds are rated four notches above the bank's IDR, at the highest end of the rating scale. This is out of a maximum achievable uplift of seven notches, consisting of a resolution uplift of zero notches, a payment continuity uplift of six notches and a recovery uplift of one notch. Fitch's analysis relies on the programme's committed AP used in the programme's asset coverage test of 90.5%, which provides more protection than Fitch's '
The Stable Outlook reflects a three-notch buffer against an IDR downgrade.
The key rating drivers listed in the applicable sector criteria, but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
The rating on the covered bond is at the highest level on Fitch's rating scale and cannot be upgraded.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
ANZ's covered bond rating would be vulnerable to a downgrade if the bank's Long-Term IDR were downgraded by four or more notches to 'BBB' or below; or if the relied-upon AP were to provide less protection than Fitch's '
Fitch's '
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
Date of Relevant Committee
SOURCES OF INFORMATION
The issuer has informed Fitch that not all relevant underlying information used in the analysis of the rated bonds is public.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The covered bond ratings are driven by the credit risk of the issuing financial institution, as measured by its Long-Term IDR.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
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