S&P affirms Westpac

Standard & Poor's said it affirmed Westpac Banking Corp. at AA/stable/A-1+ counterparty credit ratings.

The agency said ratings reflect the bank's strong financial profile, which has benefited from the strong asset quality, improved operational efficiency, earnings diversity and adequate liquidity.

Australian banking-industry factors such as competitive pressures, tightening interest margins and moderate capitalization remain key factors in moderating the ratings, according to S&P.

Also moderating the rating is limited opportunity for retail funding growth across the industry, which heightens banks' reliance on wholesale funding markets, the agency said.

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