Credit rating

Long-Term:  BBB+
Short-Term: A-2 
Outlook:       Positive

On 14 December 2022, Standard & Poor's Global Ratings affirmed its long-term counterparty credit rating at 'BBB+' and affirmed the short-term rating at 'A-2'outlook. Further to this, the positive outlook for BEN was affirmed.

The positive outlook reflects a positive trend for Australian banking industry risk (including BEN) on the back of growing systemwide customer deposits and falling offshore borrowing- both as a proportion of domestic customer loans.

S&P expect to raise the long-term issuer credit rating of BEN in the next two years if a view is formed that the Australian banking system’s net external borrowings were to remain sustainably below 20% of domestic customer loans.

Long-Term:  A-
Short-Term: F2 
Outlook:      Stable

On 14 June 2023, Fitch Ratings affirmed Bendigo and Adelaide Bank Limited's (BEN) Long-Term Issuer Default Rating (IDR) at 'A-' with a Stable outlook and affirmed the Viability Rating (VR) at 'a-'.

Fitch expects BEN's asset-quality metrics to weaken over the next two years as higher interest rates and elevated inflation put pressure on some borrowers. Buffers built up by borrowers along with low unemployment mean a significant increase in stage 3 loans appears unlikely. Fitch’s base case forecasts the four-year average operating profit/risk-weighted assets (RWA) ratio to rise and remain above 1.5%. Rising rates and loan growth above system should see net interest margin expand over the next two years, but it may be partly offset by intense competition in both lending and funding markets.

Further, Fitch expects BEN's common equity Tier 1 (CET1) ratio to remain around the 11.2% reported at end-March 2023. It expects BEN’s funding profile to remain stable over the next two years, maintaining most of the improvement in the loan/deposit ratio over the past two years.

Long-Term:  A3
Short-Term: P-2 
Outlook:       Stable

On 15 November 2021, Moody's affirmed the 'A3' long-term issuer and senior unsecured debt ratings of Bendigo and Adelaide Bank Limited. Moody's has also affirmed BEN's baseline credit assessment (BCA) of ‘baa1’ and short term rating of 'P-2'. The ratings outlook remain stable.

Moody's noted that BEN's ratings reflect the Bank's well-developed franchise centred around community banking, conservative management historically focused on low-risk lending, strong funding structure and good capital adequacy. Moody’s also noted BEN’s balance sheet buffers remain very strong as its asset profile is good with relatively low levels of nonperforming loans, but remains sensitive to the uncertainty of the pandemic in Australia.