Moody's Rating Update for BOQ Group

Bank of Queensland Limited (ASX: $BOQ) has announced that Moody's has downgraded its senior unsecured rating due to a change in the rating methodology. The downgrade is attributed to the re-assessment of possible government support for banks at the point of failure, resulting in the lowering of BOQ's Government support from moderate to low. This change has led to a 1 notch senior unsecured downgrade for BOQ, although it is emphasized that this is not related to any change in BOQ's capital and financial resilience, which remain strong.

Executive Commentary on Moody's Rating Update

The methodology change announced by Moody's today has led to the downgrade of BOQ's senior unsecured rating. It's important to note that this downgrade is not reflective of any weakening in our capital and financial resilience, which continue to be robust. While the change in government support assessment has impacted our rating, we remain focused on maintaining our strong position and delivering value to our stakeholders.

Summary of Moody's Rating Update for BOQ Group

Moody's methodology change has resulted in the downgrade of BOQ's senior unsecured rating due to the reassessment of possible government support for banks at the point of failure. Despite this, BOQ emphasizes that its capital and financial resilience remain strong. The bank does not anticipate a significant impact on funding costs, as only a small percentage of its total assets are funded by long-term senior unsecured debt. BOQ's credit ratings from other agencies remain unchanged. Looking ahead, BOQ remains committed to its robust position and delivering value to its stakeholders.