AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 127.30 Increased By ▲ 0.26 (0.2%)
BOP 6.62 Decreased By ▼ -0.05 (-0.75%)
CNERGY 4.55 Increased By ▲ 0.04 (0.89%)
DCL 8.56 Increased By ▲ 0.01 (0.12%)
DFML 41.72 Increased By ▲ 0.28 (0.68%)
DGKC 87.40 Increased By ▲ 0.55 (0.63%)
FCCL 32.50 Increased By ▲ 0.22 (0.68%)
FFBL 64.87 Increased By ▲ 0.07 (0.11%)
FFL 10.22 Decreased By ▼ -0.03 (-0.29%)
HUBC 109.44 Decreased By ▼ -0.13 (-0.12%)
HUMNL 14.75 Increased By ▲ 0.07 (0.48%)
KEL 5.10 Increased By ▲ 0.05 (0.99%)
KOSM 7.55 Increased By ▲ 0.09 (1.21%)
MLCF 41.49 Increased By ▲ 0.11 (0.27%)
NBP 59.60 Decreased By ▼ -0.81 (-1.34%)
OGDC 192.75 Increased By ▲ 2.65 (1.39%)
PAEL 28.15 Increased By ▲ 0.32 (1.15%)
PIBTL 7.81 Decreased By ▼ -0.02 (-0.26%)
PPL 151.15 Increased By ▲ 1.09 (0.73%)
PRL 27.11 Increased By ▲ 0.23 (0.86%)
PTC 16.04 Decreased By ▼ -0.03 (-0.19%)
SEARL 86.02 Increased By ▲ 0.02 (0.02%)
TELE 7.78 Increased By ▲ 0.07 (0.91%)
TOMCL 35.42 Increased By ▲ 0.01 (0.03%)
TPLP 8.21 Increased By ▲ 0.09 (1.11%)
TREET 16.45 Increased By ▲ 0.04 (0.24%)
TRG 53.29 No Change ▼ 0.00 (0%)
UNITY 26.45 Increased By ▲ 0.29 (1.11%)
WTL 1.28 Increased By ▲ 0.02 (1.59%)
BR100 9,988 Increased By 104.4 (1.06%)
BR30 31,138 Increased By 537.6 (1.76%)
KSE100 94,154 Increased By 798.7 (0.86%)
KSE30 29,167 Increased By 236.2 (0.82%)

Moody's Investors Service on Monday downgraded 12 Australian banks, including the four biggest lenders, reflecting what it called elevated risks in the household sector. Such risk was heightening the sensitivity of the banks' credit profiles to an adverse shock, according to the ratings agency. "While Moody's does not anticipate a sharp housing downturn as a core scenario, the tail risk represented by increased household sector indebtedness becomes a material consideration in the context of the very high ratings assigned to Australian banks," it said.
Moody's said the long-term credit ratings for Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank an Westpac Banking Corp were downgraded to Aa3 from Aa2. It reaffirmed their short-term ratings. The Australian government has taken steps in recent months to cool the red-hot property market amid concerns that speculation in housing could ultimately hurt consumers, banks and the economy.
House prices in Sydney and Melbourne have more than doubled since 2009. With cash interest rates at a record low and house prices near record highs, the nation's household debt-to-income ratio has climbed to an all-time peak of 189 percent, according to the Reserve Bank of Australia (RBA).

Copyright Reuters, 2017

Comments

Comments are closed.