The big four banks have opened lower after Moody’s has downgraded their credit ratings. The credit rating agency associated the move to high house prices in the core Sydney and Melbourne markets.
Shares in Commonwealth Bank, ANZ, National Australia Bank and Westpac have dropped, with Westpac suffering the worst fall with a 1.1 per cent decline by 1020 AEST. The other major banks were down by between 0.5 and 0.9 per cent.
The banks were stripped of their Aa2 long-term rating. Moody’s put them on the next level down at Aa3, while their short term ratings remain the same.Risk Warning:
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.