The ratings on Australia and New Zealand Banking Group Ltd. (ANZ) are supported by its sound profitability, strong position in core markets of Australia and New Zealand, and its diversified business base. ANZ's business risk profile and the potential volatility of its earnings streams have both reduced following its strategic repositioning in core retail and domestic franchises in the past three years. Capitalization is satisfactory by domestic and international standards, notwithstanding the share buyback in May 2001 and the bank's generally more active approach to managing capital. With balance-sheet assets of A$172 billion at Sept. 30, 2000, ANZ is one of Australia's four major commercial banks. About 86% of its assets are denominated in core domestic markets in Australia and
