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

SYDNEY (S&P Global Ratings) May 17, 2016--S&P Global Ratings today said it has assigned its 'BBB-' issue credit rating to Westpac Banking Corp.'s (Westpac; AA-/Stable/A-1+) proposed Westpac Capital Notes 4 (WCN4). S&P Global Ratings rates the WCN4 notes four notches below Westpac'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 Westpac and other Australian banks--if needed--would extend to the hybrid capital instruments issued by the banks. To arrive at the rating on the WCN4 notes, we deduct four notches off Westpac's SACP, reflecting the following factors: We deduct one notch for the WCN4 notes' subordinated status; Two notches for the risk of partial

...SYDNEY (S&P Global Ratings) May 17, 2016--S&P Global Ratings today said it has assigned its '###-' issue credit rating to Westpac Banking Corp.'s (Westpac; ##-/Stable/A-1+) proposed Westpac Capital Notes 4 (WCN4). S&P Global Ratings rates the WCN4 notes four notches below Westpac'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 Westpac and other Australian banks--if needed--would extend to the hybrid capital instruments issued by the banks. To arrive at the rating on the WCN4 notes, we deduct four notches off Westpac's SACP, reflecting the following factors: + We deduct one notch for the WCN4 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 Westpac to convert all or a proportion of the WCN4 notes into ordinary shares or write them off if a nonviability trigger event...

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