STRENGTH OF AUSTRALIA’S BANKS HAVE HELPED IMPROVE AUSTRALIA’S CREDIT RATING

Sydney, 17 February, 2003:  The Australian Bankers’ Association says that Australian businesses borrowing money from overseas will on average face lower interest charges because Australia’s credit rating has improved to AAA from AA+.

The Standard and Poor’s (S&P’s) report attributes strong banks and sophisticated financial markets as two of the factors in the credit upgrade.

David Bell, Chief Executive of the Australian Bankers’ Association (ABA) said: “S&P’s upgrade to AAA from AA+ demonstrates the importance of strong banks with well-developed risk management practices for Australia’s prosperity”.

“S&P’s report identifies Australia’s strong Commonwealth Government fiscal position as a critical factor in their decision to upgrade. It also says that Australia’s relatively high dependence on foreign savings is mitigated by the high credit standing of Australia’s banks and well-developed financial markets”.

For further information:

Heather Wellard

ABA Public Relations

Phone: 02 8298 0411

Mobile: 0409 830 439

ENDS