Amidst the battering the finance sector has endured in recent times, one bank received a small blessing today – Standard and Poor’s rating agency today reaffirmed the long-term financial ratings of recently merged Bendigo Bank and Adelaide Bank at BBB+/A2.
This reflects the financial strength of the two banks, which merged in November last year and will be known as Bendigo and Adelaide Bank from 31 March 2008.
S&P have revised the outlook for the rating from positive to stable in light of current global financial environment.
Group Managing Director Rob Hunt said the reaffirmation was testament to the strong and diversified nature of the merged group, and its continued forecast for sustainable and quality earnings.
“As Standard & Poor’s recognises, the global financial sector is experiencing a period of significant volatility and reduced confidence.
“But this is an environment in which strong and disciplined management and a proven and focused strategy will demonstrate the strength of the merged entity.
“We have a proven retail banking capacity and wholesale partnership model, strong liquidity and adequate funding.
“We are directing these attributes towards business that grows profitability, enhances customer difficulty environment.”
S&P said both the BBB+A2 rating and stable outlook incorporated integration benefits from the merger that were expected to flow through to earnings.
Despite the positive news, shares in BEN followed the general downward direction of the market today, falling 25 cents to $10.46.
