ANZ Group will not be making material changes to its current business model. It will not alter the business mix, target customers, pricing, risk management, and underwriting of the banking subgroup. The nonbanking subgroup forms an insignificant part of the group balance sheet, earnings, and businesses. The ratings on ANZ benefit from our expectation that the Australian government is highly likely to provide timely financial support to the bank, if needed. The outlook on ANZ is stable. Economic risks facing Australian banks are likely to remain low. This is despite rising interest rates and consumer prices. Our base case assumes house prices in Australia will continue to fall in an orderly manner, by about 10% over the next 12-18 months.
