Australia and New Zealand Banking Group's Additional Tier 1 Capital Securities Rated 'BBB-'

MELBOURNE (S&P Global Ratings) May 30, 2016--S&P Global Ratings today said that on May 27 it assigned its 'BBB-' issue credit rating to the additional Tier 1 capital Fixed-Rate Resetting Perpetual Subordinated Contingent Convertible Securities that Australia and New Zealand Banking Group Ltd. (ANZ; AA-/Stable/A-1+) has proposed to issue out of the bank's London branch. We rate these securities four notches below our assessment of ANZ's stand-alone credit profile (SACP) of 'a'. The starting point of the SACP reflects our view that, if required, it is unlikely that the Australian government's support for ANZ would extend to hybrid capital instruments issued by the Australian banks and their subsidiaries. The four-notch deduction below the bank's SACP reflects: The securities' subordinated status

...MELBOURNE (S&P Global Ratings) May 30, 2016--S&P Global Ratings today said that on May 27 it assigned its '###-' issue credit rating to the additional Tier 1 capital Fixed-Rate Resetting Perpetual Subordinated Contingent Convertible Securities that Australia and New Zealand Banking Group Ltd. (ANZ; ##-/Stable/A-1+) has proposed to issue out of the bank's London branch. We rate these securities four notches below our assessment of ANZ's stand-alone credit profile (SACP) of 'a'. The starting point of the SACP reflects our view that, if required, it is unlikely that the Australian government's support for ANZ would extend to hybrid capital instruments issued by the Australian banks and their subsidiaries. The four-notch deduction below the bank's SACP reflects: + The securities' subordinated status (deduct one notch); + The risk of partial or untimely payment of coupons, in our view (deduct two notches); and + Contingent capital clauses for conversion into common equity or write-down (deduct...

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