National Australia Bank Ltd.'s. (The National) ratings reflect the group's operationally and geographically diversified core business base, sound asset quality, and strong underlying profitability. While The National has consistently exhibited the ability to successfully manage its international network, its acquisitive desires will be closely monitored, as they could potentially affect the group's underlying credit profile. Offering a counterpoint to these rating benefits is a reduction in the bank's adjusted common equity ratio, resultant from the MLC Ltd. (double-'A'/Stable/—) acquisition, and Standard&Poor's deduction for the investment in life insurance companies, as well as the industrywide increased difficulty in sourcing low-cost retail deposits, which is viewed positively as a funding source. The National's A$2.03 billion half-year March 2001 results reflect
