Moody's downgrades Australia's top banks over housing risk

Sydney

MOODY'S Investors Service on Monday downgraded 12 Australian banks, including the four biggest lenders, reflecting what it called elevated risks in the household sector.

Such risk was heightening the sensitivity of the banks' credit profiles to an adverse shock, according to the ratings agency.

"While Moody's does not anticipate a sharp housing downturn as a core scenario, the tail risk represented by increased household sector indebtedness becomes a material consideration in the context of the very high ratings assigned to Australian banks," it said.…