The ratings on Australia and New Zealand Banking Group Ltd. (ANZ) reflect its sound profitability, which is supported by its strong market position in its core markets of Australia and New Zealand. The stability of profitability has been strengthened by the ongoing reduction in the bank's risk profile and by its success in establishing a market leadership position in many of its specialized business lines. ANZ's capital position has remained satisfactory by domestic and international standards, although capital ratios could moderate as the bank manages capital closer to lower targeted levels. The ratings also continue to benefit from the bank's good asset-quality position, although nonperforming asset (NPA) levels remain slightly higher than those of domestic peers. ANZ maintains a number
