Melbourne, 22 June 2017– Australia Ratings has withdrawn its credit rating of ‘BBB+’ to the Heritage Bank Retail Bonds. A ‘BBB+’ rating indicates a fixed income portfolio has a moderate level of protection against loss arising from credit risk.
Australia Ratings has also withdrawn its Product Complexity Indicator (PCI) of ‘GREEN’ which indicated that the terms and conditions of the Bonds were simple and straightforward. The rating and PCI have been withdrawn following the maturity and repayment of the bonds in June 2017.
The Heritage Bank Retail Bonds issue was part of Heritage’s funding and capital management strategy. The Bonds’ interest rate was fixed at 7.25% per annum payable quarterly in arrears. The Bond were due to mature in June 2017 with an original maturity of five years.
For more information contact:
Chris Dalton, Managing Director
0403 584 600
03 8080 6684
About Australia Ratings
Australia Ratings is Australia’s local credit rating agency with over 55 years of experience in assessing and rating credit risk. Australia Ratings was formed in 2010 following regulatory reforms to the operation of credit rating agencies in Australia. Australia Ratings Pty Limited holds Australia Financial Services License No. 346138.
Rating opinions of Australia Ratings are determined by its analytical team in accordance with its rating methodology. The Board of Australia Ratings, whose members include Jarrod Brown, Chris Dalton and Mike Dontschuk, oversee the application of Australia Ratings rating methodology and the integrity of the rating process.