The ratings assigned to Westpac Banking Corp. (Westpac) reflect the bank's strong business franchise in its core markets of Australia and New Zealand, and its solid and financial profile. Westpac's recent financial performance has benefited from strong growth across its core banking products and its strong asset quality. The high portion of relatively low-risk mortgage loans in the loan portfolio, the relatively good operating environment in home markets in recent years, and well-developed and effectively utilized risk-management practices underpin Westpac's asset quality. Heightened competitive pressure, however, has contributed to a downward trend in interest margins, thus intensifying the bank's ambitions to realize further efficiency improvements and in seeking out new business opportunities. Westpac, assisted by past regional bank acquisitions, secured
