News
Australia’s sovereign rating will be tested in the coming months as the ramifications of the COVID-19 crisis play out through the economy, according to Fitch Ratings. A newly placed negative outlook on Australia’s AAA rating relates to significant downside risks in the domestic economy, including household debt, as well as global factors such as newly levied trade barriers.
On 28 May, Spark Finance (A- by S&P) launched a new six-year, Australian dollar denominated transaction. The forthcoming deal is being marketed at 155 basis points area over semi-quarterly swap and is expected to price on the day of launch. ANZ and Westpac Institutional Bank are leading.
The following interview is with an Australian-based service provider to the debt capital markets. It was conducted on 25 May 2020.
On 27 May, BNP Paribas (A+/Aa3/AA-) launched a new five-year, Australian dollar denominated, senior non-preferred, benchmark transaction, offered in either or both fixed and floating-rate note formats. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 210-215 basis points area over swap benchmarks.
On 27 May, the Bank of Nova Scotia (BNS) (A+/A2/AA-) mandated Commonwealth Bank of Australia, HSBC, Scotiabank, UBS and Westpac Institutional Bank to host an investor call on the same day regarding a potential three-year, Australian dollar denominated, senior-unsecured, benchmark transaction.
Late in the Sydney day on 26 May, BNP Paribas (A+/Aa3/AA-) revealed plans for a new five-year, Australian dollar denominated, senior non-preferred transaction, offered in either or both fixed and floating-rate note formats. BNP Paribas, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank have been mandated as joint lead mangers.
On 26 May, S&P Global Ratings and Fitch Ratings assigned preliminary ratings to Resimac's proposed residential mortgage-backed securities (RMBS) deal, Resimac Triomphe Trust - Premier Series 2020-2. The deal has indicative total volume of A$500 million (US$329.7 million). Resimac mandated Deutsche Bank, J.P. Morgan, National Australia Bank, Standard Chartered and Westpac Institutional Bank as lead managers for the potential transaction on 22 May.