Strong, well-diversified business platform in Australia and New Zealand Solid asset quality and credit underwriting standards Strong balance-sheet structure and earnings diversity Revitalized strategy and management focus Uncertainties in risk management, corporate governance, and culture Regulatory sanctions impeding capital flexibility Exposure to highly competitive market segments The ratings on National Australia Bank Ltd. (NAB) reflect its well-diversified and soundly based banking franchise, solid asset quality, and strong underlying cash earnings capability. Underlying earnings are supported by its solid asset quality, partly reflecting benign domestic conditions and core underwriting and recovery skills. Even so, ongoing restructuring, large one-off costs, and profit on the sale of noncore subsidiaries have buffeted headline earnings. A revitalized management team and strategy is expected to improve
