Fitch removes BOQ from positive watch; affirms Bendigo Bank
Fitch Ratings has affirmed the ratings of Bank of Queensland (BoQ), removed them from Rating Watch Positive (RWP) and assigned the Long-term Foreign Currency Issuer Default Rating (IDR) a Positive Outlook. At the same time the ratings of Bendigo Bank Limited (BBL) were affirmed.
This action follows the announcement that BoQ will no longer pursue merger discussions with BBL. BoQ’s Long-term Foreign Currency IDR was initially placed on Positive Outlook on 14 June 2006 - this was removed and replaced by the RWP which was placed on BoQ’s ratings following the announcement of merger discussions with BBL. The ratings are as follows:
BoQ: Long-term Foreign Currency IDR ‘BBB’ with Positive Outlook, Short-term Foreign Currency IDR ‘F2′, Individual ‘B/C’ and Support ‘4′. BBL: Long-term Foreign Currency IDR ‘BBB+’ with Stable Outlook, Short-term Foreign Currency IDR ‘F2′, Individual ‘B/C’, Support ‘4′, senior unsecured long-term debt ‘BBB+’ and short-term debt ‘F2′. The Support Rating Floors of both banks remain unchanged at ‘B+’. BoQ formally approached BBL with an unsolicited cash and scrip bid on 19 March 2007, which was rejected by the board of BBL on 24 April 2007. A subsequent informal all cash bid was also rejected on 21 June 2007, after which BoQ announced it would not pursue further merger discussions with BBL. BoQ has indicated that it will pursue its existing organic growth strategy with acquisitions undertaken if they prove strategic for the bank. –www.theasianbanker.com (June 27 2007)–