Standard&Poor's Ratings Services, on March 12, 2004, lowered its long-term counterparty credit rating on National Australia Bank Ltd. (NAB), and related entities, to 'AA-' from 'AA'. The outlook on NAB was revised to stable from negative, and the short-term rating was unchanged at 'A-1+'. NAB is the largest of Australia's four major commercial banks with nearly A$400 billion in total assets at Sept. 30, 2003, sourced largely through its Australian, U.K., and New Zealand operations. By market capitalization, NAB is a top-20 bank in global terms. The downgrade reflected material and multiple breakdowns in NAB's risk management processes and weaknesses in the bank's corporate governance. Risk management remains a key rating issue for the bank. The recently announced
