...SYDNEY (S&P Global Ratings) Feb. 5, 2018--S&P Global Ratings today said that it has assigned its '##+' issue credit rating to Westpac Banking Corp.'s (WBC; ##-/Negative/A-1+) proposed Westpac Capital Notes 5 (WCN5). We rate the WCN5 four notches below WBC's stand-alone credit profile (SACP) of 'a-'. The starting point of the SACP reflects our view that it is unlikely that the Australian government's support for WBC and other Australian banks--if needed--would extend to the hybrid capital instruments issued by the banks. To arrive at the rating on the WCN5, we deduct four notches off WBC's SACP reflecting the following factors: + We deduct one notch for the WCN5's subordinated status; + Two notches for the risk of partial or untimely payment; and + One notch for a nonviability contingent capital feature that would require WBC to convert all or a proportion of the WCN5 into ordinary shares or write them off, if a nonviability trigger event occurred. In our capital analysis of WBC, the proposed...
