Fitch cuts Suncorp-Metway

Fitch Ratings said it downgraded Suncorp-Metway Ltd.'s long-term issuer default rating to A from A+.

The outlook is stable.

All of the ratings of Suncorp-Metway have been affirmed, as have the ratings of Suncorp Group Ltd., Suncorp Metway Insurance Ltd. and Vero Insurance Ltd.

The downgrade reflects the company's continued weak asset quality, which is evident in a high level of impaired assets, low provisioning relative to similarly rated peers and geographic concentration in the state of Queensland, Fitch said.

The stable outlook reflects the bank's sound liquidity and capital positions and the fact that it remains a core part of the Suncorp group, the agency said.

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