S&P: Westpac unaffected

Standard & Poor's said the AA rating on Westpac Banking Corp. has not been affected by Westpac's all-scrip merger bid for St.George Bank Ltd. (A+/Watch positive/A-1).

The outlook remains stable.

"There has been no rating impact given an all-scrip funding would maintain capital ratios and other key credit metrics at existing levels," S&P analyst Maryanne Galea said in a written statement.

"While we consider that there will be key challenges in integrating the two entities, we expect the combined entity to be effectively managed given both entities largely operate within the same Pacific region and Westpac CEO's previous experience at St.George," the analyst said.

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