Ratings agency Moody's Investors Service has cut Bank of Queensland Limited’s (ASX:BOQ) rating by one notch from A2 to A3.
Moody’s made the move at the end of last week, attributing its decision to the bank’s asset quality deterioration and potential commercial property defaults.
After the market closed the Brisbane-based regional lender responded to the decision. The bank’s CEO Stuart Grimshaw says he is “disappointed” about the downgrade but confident in terms of its funding requirements for this year.
Mr Grimshaw says the bank remains a well-capitalised Australian bank with a strong funding and liquidity position.
Standard & Poor’s downgraded Bank of Queensland’s long-term issuer credit rating at the end of last year by one notch from BB+ to BBB.
In the 2011 financial year Bank of Queensland reported a net profit of $159 million.
