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Standard & Poor’s has revised its outlook for National Australia Bank (NAB) from stable to negative in light of the bank’s $830 million provision against bad US housing loans on Thursday.
The bank’s ratings were affirmed however at AA/A-1+.
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Standard & Poor’s credit analyst Sharad Jain said the large provision was a “one-off event”.
While the agency expected the bank to remain profitable in the second half of fiscal 2008, Jain said the negative outlook reflected “the risk of further increases in credit costs in the next 12 months”.
Jain said it also highlighted the challenges NAB may face in the predication of credit losses in future.
Meanwhile Westpac and CBA both confirmed in statements to the ASX on Thursday they had no exposure to any similar losses.
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Published: 28-07-08
