Ratings agency, Fitch Ratings, has upgraded its rating of Australia and New Zealand Banking Group Ltd
(ASX:ANZ) to positive.
The bank confirmed today that Fitch Ratings has revised its outlook on its long term issuer default rating to positive from stable.
Fitch says the ratings of ANZ, including the change in outlook, take into account the group’s improved earnings diversity following the full acquisition of its wealth management operations, the potential diversification benefits provided by the Asian expansion strategy and its generally improved financial profile.
The upgrade also follows news that ANZ is shaping up as the top contender to acquire a controlling stake in Indonesia’s PT Bank Panin worth US$1.4 billion.
The 46% stake up for sale belongs to the Gunawan family, who have hired UBS to run an auction to sell the entire stake.
ANZ which has expressed its desire to expand its presence in Asia, already has a 38.5% stake in the Indonesian bank.
According to Reuters, a spokesperson for ANZ says the bank has a long term partnership with Panin, and that ANZ will continue to invest in its branded business in Indonesia, giving it a platform for organic growth.
For the year to September 30, 2009, ANZ earned profit of $2.943 billion.
