S&P cuts credit rating outlook for second-tier Australian banks

Standard & Poor's has cut its credit rating outlook for second-tier Australian banks, highlighting the growing risks to lenders from rising property prices and household debt. The credit rating agency on Monday lowered its credit rating outlook for 25 financial institutions in the country, including Bank of Queensland, Bendigo and Adelaide Bank, Macquarie Bank and AMP Bank. "We believe the risks of a sharp correction in property prices could increase and if that were to occur, credit losses incurred by all financial institutions operating in Australia are likely to be significantly greater," S&P said. (VIEW LINK)