US credit ratings agency out with a report on Australian banks 26 May 2016
– remain solid but asset quality expected to come under gradual pressure
– asset quality is expected to gradually weaken from potential further stress in resources-related sectors and regions
“We expect gradual pressure on asset quality will be exerted by multiple headwinds, even as the declining interest rate environment and stable employment conditions continue to act as factors supporting loan repayments,” However, the banks are well capitalized to absorb any losses, and are expected to continue to improve their