Macquarie Group Outlook Revised To Positive, Macquarie Bank Outlook To Developing On Transitioning Of Risk Profile

MGL and MBL's risk profile is transitioning as reflected in the performance and risk management outcomes of the group and the bank as well as the reorientation of the group's businesses toward repeatable income sources. In our view, this transition is gradual and we are now at a point in time where there is at least a one-in-three probability that over the next two years we may reflect the positive transition in the group and the bank's credit profile. At the same time, the negative impact of a potential weakening of extraordinary government support is still weighing on the credit profile of the bank. We are revising our outlook on MGL to positive from stable reflecting the improving risk profile,

...+ MGL and MBL's risk profile is transitioning as reflected in the performance and risk management outcomes of the group and the bank as well as the reorientation of the group's businesses toward repeatable income sources. + In our view, this transition is gradual and we are now at a point in time where there is at least a one-in-three probability that over the next two years we may reflect the positive transition in the group and the bank's credit profile. At the same time, the negative impact of a potential weakening of extraordinary government support is still weighing on the credit profile of the bank. + We are revising our outlook on MGL to positive from stable reflecting the improving risk profile, and revising our outlook on MBL to developing from negative reflecting both the negative impact of a potential weakening of government support and the positive impact of an improvement in its risk profile. We are also affirming our '###/A-2' ratings on MGL and our 'A/A-1' ratings on MBL....

Ratings Action