MELBOURNE(Standard&Poor's CreditWire) May 12, 1999--Standard&Poor's today assigned its single-'A' long-term foreign currency rating to US$500 million in income securities issued by National Australia Bank Ltd. (National, rated AA/Stable/A-1+) under its National Income Securities issue. Oversubscriptions are permitted under program documentation. The rating differential between this issue and National's double-'A' long-term counterparty credit rating reflects the equity-like characteristics and junior status of the securities. Subject to a regulatory capital and a distributable profits test, interest on the securities is payable quarterly. If an event of default occurs, at the option of National after five years, or under certain other limited circumstances, the securities automatically convert into preferred stock, ranking behind subordinated and junior subordinated debt (if any).
