S&P affirms ASB’s ratings, revises outlook

ASB Bank Limited (ASB) notes the announcement dated 8 April 2020 by S&P Global Ratings (S&P) on the ratings of Australian major banks and their New Zealand subsidiaries. ASB's long-term and short-term ratings have been affirmed by S&P at 'AA-' and 'A-1+' respectively. S&P has revised ASB's outlook from 'stable' to 'negative'. ASB's ratings and outlook are aligned with those of its ultimate parent, Commonwealth Bank of Australia (CBA), to reflect S&P's view that ASB remains an integral part of the CBA group. ASB's Standalone Credit Profile (SACP) has also been affirmed by S&P at 'a-'. CBA's long-term and short-term ratings have been affirmed by S&P at 'AA-' and 'A-1+' respectively. S&P has revised CBA's outlook from stable to negative to reflect a substantial deterioration in Australia's fiscal headroom at the AAA rating level. ASB's capital and funding position remains strong. As at the last reported disclosure date, 31 December 2019, ASB's Tier 1 Capital Ratio was 11.7% versus a regulatory minimum of 4.5%. As at 31 March 2020, ASB's Core Funding Ratio was 89.5% versus a regulatory minimum of 50%. We attach a copy of CBA's ASX announcement. ENDS Released by: Rachel Martin, ASB Group Governance, ASB Bank Limited asbsecretariat@asb.co.nz For enquiries, contact: Chandu Bhindi, General Manager Treasury, ASB Bank Limited funding@asb.co.nz End CA:00351492 For:ABB Type:CREDIT Time:2020-04-08 17:27:14