Credit rating

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

On 27 April 2021, Standard & Poor's Global Ratings revised its outlook on Bendigo and Adelaide Bank to positive from stable and affirmed its long-term counterparty credit rating at 'BBB+' and affirmed the short-term rating at 'A-2'.

The positive outlook on BEN reflects the view that there is a one-in-three possibility that Australian banks will face reduced industry risks in the next two years. S&P consider that the stronger systemwide funding metrics could be sustained despite a modest weakening in the next three years as the COVID-19 driven rise in customer deposits through 2020 unwinds and the RBA’s term funding matures.

S&P expect to raise the long-term issuer credit rating on BEN by one notch to 'A-' if a view is formed that industry risks facing Australian banks have reduced sustainably, all else being equal.

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

On 30 November 2020, Fitch Ratings, the international ratings agency affirmed Bendigo and Adelaide Bank Ltd's long term rating at 'A-', and affirmed the short term rating of 'F2' and its support rating of '3', and the Bank's viability rating of 'A-'. The outlook is negative.

Fitch commented that they have maintained a negative factor outlook on the 'aa-' operating environment score for Australian banks to reflect continued downside risks to the base-case forecasts, although the level of uncertainty has reduced since Fitch revised the factor outlook in April 2020.

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

On 4 May 2021, Moody's affirmed its long-term issuer rating at 'A3' and short term rating at 'P-2', with a stable outlook.

Moody’s commented that the ratings reflect the Bank's strong credit profile characterized by its well-developed franchise centered around community banking, conservative management historically focused on low-risk lending, stable asset quality, strong funding structure and good capital adequacy.

Following Moody's affirming Bendigo and Adelaide Bank's rating, On 25 March 2021, Moody’s updated the Australian banking system to Stable from Negative. Moody's noted "The profitability of Australian banks will improve as the very high loan loss provisions taken in 2020 are unlikely to recur. While banks' non-performing loan (NPL) ratios will rise, we expect they will peak in 2021, with banks having substantial reserves to cover potential increases in loan losses. Improvements in profitability, combined with the easing of asset risks, will enable banks to maintain strong capital ratios."