Westpac Banking Corp.'s New Zealand Dollar Subordinated Notes Rated 'BBB+'

SYDNEY (S&P Global Ratings) July 25, 2016--S&P Global Ratings today said it has assigned its 'BBB+' issue credit rating to Westpac Banking Corp.'s (AA-/Negative/A-1+) proposed New Zealand dollar subordinated notes. We rate these securities two notches below Westpac's stand-alone credit profile (SACP) of 'a'. The starting point of the SACP reflects our view that, if required, it is unlikely that the Australian government's support for Westpac would extend to hybrid capital instruments issued by the bank. The rating reflects these securities' subordinated status (deduct one notch) and contingent capital clause for write-down of principal and interest (deduct one notch). We have assessed the proposed issue as having minimal equity content. In our view, and similar to other Tier 2 instruments,

...SYDNEY (S&P Global Ratings) July 25, 2016--S&P Global Ratings today said it has assigned its '###+' issue credit rating to Westpac Banking Corp.'s (##-/Negative/A-1+) proposed New Zealand dollar subordinated notes. We rate these securities two notches below Westpac's stand-alone credit profile (SACP) of 'a'. The starting point of the SACP reflects our view that, if required, it is unlikely that the Australian government's support for Westpac would extend to hybrid capital instruments issued by the bank. The rating reflects these securities' subordinated status (deduct one notch) and contingent capital clause for write-down of principal and interest (deduct one notch). We have assessed the proposed issue as having minimal equity content. In our view, and similar to other Tier 2 instruments, these securities have limited ability to delay coupons on a going-concern basis and have a defined maturity of 10 years, with an option to redeem after five years. These instruments are able to absorb...

Ratings Action