S&P rates Westpac notes BBB-

S&P said it gave its BBB- issue credit ratings to Westpac Banking Corp.'s planned additional tier 1 capital notes 8 (CN8).

“We rate WBC's CN8 four notches below WBC's stand-alone credit profile (SACP) of a. The starting point of the SACP reflects our view that it is unlikely that the Australian government's support for WBC and other Australian banks–if needed–would extend to hybrid capital instruments issued by the banks,” S&P said in a press release.

The agency said it subtracts a notch for the notes' subordinated status, two notches for the risk of partial or untimely payment and one notch for a non-viability contingent capital feature that would require WBC to convert all or a proportion of the notes into ordinary shares or write them off if a trigger event occurred.

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