Strong market position in the retail and commercial banking sectors in Australia and New Zealand. Conservative risk appetite, backed by a sound risk-management framework. Highly likely to receive timely financial support from the Australian government, if needed. Material dependence on domestic and offshore wholesale borrowing. Exposed to risks from falling house prices, rising unemployment, weakening economy due to COVID-19, and high private sector debt. The negative outlook on Westpac Banking Corp. (Westpac) mirrors that on the Australian sovereign (AAA/Negative/A-1+), and reflects a one-in-three likelihood that we will lower our long-term rating on the bank in the next two years. In our base case, we expect that, despite a significant fall in interest and fee income, Westpac's earnings in the next
