Falling into line with the credit assessments of it rivals, Fitch Ratings yesterday upgraded the long-term credit ratings of Australia’s four major banks to AA- from A+.
The upgrades, broadly, were based on the build up of equity to meet loss-absorbing requirements and the recent implementation by APRA of a resolution planning framework.
Fitch several years ago took a harsher view of the long-term credit ratings of major banks, all four of whom can now brag they have “AA” ratings from the three US-based credit ratings agencies.
?Fitch has also upgraded the short-term ratings the four majors to F1+ from F1.
Macquarie Bank has had its long-term rating upgraded to A+ from A.