(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
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