TEXT-S&P: Report Discusses Aust. Banks' Readiness For Basel III

Mon Nov 12, 2012 6:54pm EST

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(The following was released by the rating agency) SYDNEY (Standard & Poor's) Nov. 13, 2012--In Standard & Poor's Ratings Services' view, Australian banks are ready for the new capital rules and ratios that the introduction of Basel III regulation will mandate.

In a new report publish today, Standard & Poor's says that the implementation of Basel III will have a neutral rating impact on bank ratings in Australia.

On Sept. 28, 2012 the Australian Prudential Regulation Authority (APRA) released a final set of prudential standards and reporting standards that give effect to major elements of the Basel III capital reforms in Australia.

"We concur with APRA's view that Australian banks are starting from a sound and strongly capitalised position, placing them well to meet the Basel III timetable--which APRA has accelerated in some areas," says credit analyst Nico DeLange, in the report. "We therefore do not expect that our assessment of the Australian banks' capital and earnings will change materially (all things being equal) over the short-to-medium term as a result of the adoption of Basel III in Australia.

We will, however, only be in a position to fully make this assessment after Basel III becomes fully operational, beginning January 2013."

The report, titled, "Australian Banks' Capital Positions See Them Ready For Basel III," is available to subscribers of RatingsDirect at www.globalcreditportal.com. Members of the media may contact Richard Noonan for a copy. RELATED RESEARCH -- Australian Banks' Capital Positions See Them Ready For Basel III, published Nov. 13, 2012

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