Moody's Confirms Stable Credit Rating

Moody's has confirmed a rating for Heritage Bank of A3/P-2 with a Stable outlook.

Moody's indicated that Heritage's ratings are supported by its low risk loan book and conservative strategy which are a reflection of its focus on residential mortgages. It is also supported by its sound capital levels and solid customer franchise.

Heritage CEO John Minz said this reaffirmation was pleasing given the global issues and illustrated the continued strength of the Heritage business model.

"As Australia's largest customer owned bank with one of the lowest arrears rates in the industry and one of the highest ongoing customer satisfaction ratings we are pleased that Moody's concur that we have a successful and sustainable business model." Mr Minz said.

"Our record speaks for itself and we continue to grow profit, just as we did throughout the GFC. Heritage has recorded 12 consecutive years of record pre-tax profit, despite these challenging times."

"Our capital and liquidity ratios are strong and well above regulatory levels and it is encouraging that Moody's recent review has supported this despite the somewhat gloomy economic times."

"Heritage has an extremely strong operating model and we are looking forward to continuing to deliver excellent value to our members in the years ahead".

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

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