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".