ME Bank Upgraded To 'BBB+' On Completed Acquisition By BoQ, Off Watch Positive; BoQ Ratings Affirmed; Outlooks Positive

Australia-based Bank of Queensland Ltd. (BoQ) has completed its acquisition of Members Equity Bank Ltd. (ME Bank). We believe BoQ will support ME Bank in all foreseeable circumstances, if required. We are raising our long-term ratings on ME Bank to 'BBB+' and removing them from CreditWatch with positive implications. We equalize the ratings on ME Bank with those on BoQ. We are affirming our ratings on BoQ at 'BBB+/A-2' as the acquisition does not meaningfully change BoQ's credit profile, in our view. The outlook on both entities is positive, reflecting easing systemwide funding risks. On July 1, 2021, S&P Global Ratings raised its long-term ratings on Members Equity Bank Ltd. (ME Bank) to 'BBB+' from 'BBB', and removed the ratings

...July 1, 2021 - Australia-based Bank of Queensland Ltd. (BoQ) has completed its acquisition of Members Equity Bank Ltd. (ME Bank). - We believe BoQ will support ME Bank in all foreseeable circumstances, if required. - We are raising our long-term ratings on ME Bank to '###+' and removing them from CreditWatch with positive implications. We equalize the ratings on ME Bank with those on BoQ. - We are affirming our ratings on BoQ at '###+/A-2' as the acquisition does not meaningfully change BoQ's credit profile, in our view. - The outlook on both entities is positive, reflecting easing systemwide funding risks. On July 1, 2021, S&P Global Ratings raised its long-term ratings on Members Equity Bank Ltd. (ME Bank) to '###+' from '###', and removed the ratings from CreditWatch, where we had placed them with positive implications on Feb. 22, 2021. At the same time, we affirmed our short-term ratings on ME Bank at 'A-2' and our long- and short-term ratings on Bank of Queensland Ltd. (BoQ) at '###+/A-2'....

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