Very strong capital position, supported by ongoing parental support. Likely to receive extraordinary financial support from its parent, if required. Very small market position and susceptibility to ongoing competitive pressures. Funding profile vulnerable to competitive pressures in a stressed operating environment. Our stable outlook on Australian Unity Bank Ltd. (AUB) reflects our expectation that AUB will remain an important part of the broader Australian Unity Ltd. (AUL) group's overall strategy, evidenced through the group's supportive approach to AUB's growth aspirations. We see a one-in-three likelihood that the economic risks Australia's banking system faces will increase. This would likely see our risk-adjusted capital (RAC) ratio for AUB fall sustainably below 15%--the result being a lower stand-alone (excluding group support) assessment of
