Fitch: Housing market downturn to weigh down on Australian banks' ratings

Fitch Ratings is out with its latest review report on the Australian banking sector, underscoring key risks that could pressure the Australian banks’ ratings.

Key Points:

Mortgage portfolios of Australia's 4 major banks could withstand housing market downturn without experiencing losses that threaten viability.

Australian banks' ratings would be likely to come under pressure in severe scenarios where banks suffer from large second-order economic effects.