Moody’s Investors Service has changed its outlook on the Australian banking system to negative. The rating agency says the move is based on the expectation that the banks’ operating environment, capital positions and loan quality will be materially weaker when Australia starts to emerge from the COVID-19 crisis.
On 2 April, Canadian Imperial Bank of Commerce Sydney Branch (CIBC Sydney) (A+/Aa2/AA-) launched a new three-year, Australian dollar denominated, floating-rate note, covered bond transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 125 basis points area over three-month bank bills.
The Reserve Bank of New Zealand (RBNZ) has added a term lending facility (TLF) for banks to its suite of COVID-19 relief measures. It has also restricted banks from redeeming capital instruments that are not common-equity tier-one (CET1).