Fitch Ratings has assigned
The Outlook is Stable. This issuance brings WBC's total outstanding covered bonds to AUD25.9 billion. The fixed-rate bonds are due in
KEY RATING DRIVERS
The '
The covered bonds are rated four notches above the bank's IDR, at the highest end of the rating scale. This is out of a maximum achievable uplift of seven notches, consisting of a resolution uplift of zero notches, a payment continuity uplift (PCU) of six notches and a recovery uplift of one notch. For its analysis, Fitch relies on the programme's committed AP used in the programme's asset coverage test, which is equal to Fitch's breakeven AP of 90.5%.
The Stable Outlook on the rating reflects the three-notch buffer against a downgrade of the issuer's IDR.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
The rating on the covered bonds is '
Factors that could, individually or collectively, lead to negative rating action/downgrade:
WBC's '
Fitch's '
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
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