The ratings on Australia and New Zealand Banking Group Ltd. (ANZ) reflect its strong and well-entrenched market position in its core markets of Australia and New Zealand. The ratings also reflect the company's relatively moderate risk profile, characterized by a focus on consumer assets, and its solid and strengthening core earnings profile. Although ANZ's funding profile remains sound, the challenge for the bank has been to attract low-cost customer deposits in line with recent strong credit growth. This challenge is expected to have ongoing negative impacts on its net-interest margins, and the bank's overall funding mix. ANZ is one of Australia's four major commercial banks, with balance-sheet assets of A$259.3 billion at Sept. 30, 2004. Approximately 92% of assets relate
