Moody's affirms Suncorp-Metway

Moody's Investors Service said it affirmed the A1 senior debt and deposit ratings of Suncorp-Metway Ltd. and its A2 subordinated debt rating following news that the company intends to adopt a non-operating holding company structure.

The outlook is stable

The company's bank financial strength rating of C+ was placed on review for possible downgrade, and a provisional rating of A2 was assigned to Suncorp Group Ltd., a proposed new entity that would become the holding company for the Suncorp group.

There was no impact on the Aa3 issuer rating of Vero Insurance Ltd. or A2 subordinated debt rating of Suncorp Insurance Funding 2007 Ltd., which are on review for possible downgrade.

The ratings reflect the diversity and financial strength of the group, Moody's said, as well as the structural subordination of the proposed holding company's obligations to those of its banking, general and life insurance subsidiaries.

The ratings also consider an expectation that the holding company would maintain a prudent stand-alone liquidity profile, in line with Suncorp's articulated risk management framework, the agency said.

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