MELBOURNE (Standard&Poor's CreditWire) July 5, 2001--Standard&Poor's today affirmed its double-'A' long-term and single-'A-1'-plus short-term counterparty credit ratings on National Australia Bank Ltd. (NAB) following the announcement by NAB of a US$450 million (A$568 million after tax) provision against the mortgage servicing rights of Homeside Lending Inc. (single-'A'-plus/Stable/'A-1'-plus). The outlook on NAB is stable. The provision falls within rating tolerances, with only a modest balance-sheet impact and diminution in capital ratios. The one-off negative impact of the provision on earnings is more than offset during fiscal 2001 by continued strong underlying earnings growth and proceeds from the sale of Michigan National Corp. NAB's credit profile continues to be supported by a strong and established track record, characterized
