Macquarie notes S&P has affirmed ratings and revised outlooks

Macquarie notes S&P's comments that today's changes to the outlooks for 25 institutions across the Australian financial services industry reflects their view that the "economic risks facing all financial institutions operating in Australia are rising due to the strong growth in private sector debt and residential property prices in the past four years, notwithstanding some signs of moderation in growth in recent months."

The Group also noted the following comments made today by S&P:

• "Australia remains among the lower risk banking systems globally. We consider financial institutions operating in the country benefit from a resilient economy, relatively benign economic outlook by global standards, conservative risk appetite and governance, and conservative prudential regulation."
• "In our opinion, the Australian government remains highly likely to provide timely financial support to the systemically important private banks in the country, if needed. Nevertheless, we now consider that there is a one-in-three chance that within the next two years, we will revise our assessment of government supportiveness to supportive from the current highly supportive."