Westpac Banking Corp.'s Capital Notes 9 Rated 'BBB-'

MELBOURNE (S&P Global Ratings) June 21, 2022--S&P Global Ratings today assigned its 'BBB-' issue credit rating to Westpac Banking Corp.'s proposed Westpac Capital Notes 9 (WCN9). We rate WCN9 four notches below the group's stand-alone credit profile (SACP) of 'a'. The starting point of the group SACP reflects our view that the Australian government's support for Westpac Banking (WBC; AA-/Stable/A-1+) and other Australian banks--if needed--would be unlikely to extend to hybrid capital instruments issued by the banks. To arrive at the rating on WCN9, we deduct four notches from the WBC group's SACP reflecting the following factors: One notch for the notes' subordinated status; Two notches for the risk of partial or untimely payment; and One notch for a nonviability

...June 20, 2022 MELBOURNE (S&P Global Ratings) June 21, 2022--S&P Global Ratings today assigned its '###-' issue credit rating to Westpac Banking Corp.'s proposed Westpac Capital Notes 9 (WCN9). We rate WCN9 four notches below the group's stand-alone credit profile (SACP) of 'a'. The starting point of the group SACP reflects our view that the Australian government's support for Westpac Banking (WBC; ##-/Stable/A-1+) and other Australian banks--if needed--would be unlikely to extend to hybrid capital instruments issued by the banks. To arrive at the rating on WCN9, we deduct four notches from the WBC group's SACP reflecting the following factors: - One notch for the notes' 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 notes into ordinary shares or write them off if a nonviability trigger event occurred. We have assessed the proposed issue...

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