We have affirmed the 'AA' issuer credit rating on Australia-based major bank National Australia Bank Ltd. (NAB), reflecting our expectation that NAB will maintain strong earning metrics, earnings stability, and asset quality. The bank's very strong business profile in its key and main domestic markets of Australia and New Zealand continues to support the rating. With total on-balance-sheet assets of A$686 billion at Sept. 30, 2010, NAB is one of the four major Australian banks, with most of its banking, life insurance, and wealth management operations in Australia, the U.K., and New Zealand. In our opinion, NAB's new loan loss provisions likely peaked in fiscal 2009. We expect credit-loss levels to gradually recede until they reach long-term averages, despite the
