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MELBOURNE (Standard & Poor's) Aug. 6, 2007--As part of an Asia-Pacific survey,
Standard & Poor's Ratings Services has reviewed the rat
ed Australian banks'
exposure to U.S. subprime mortgage-related instruments. From this, it is
expected that in almost all cases, their exposure to these instruments is
either minimal or manageable at this time.
Standard & Poor's view encompasses Macquarie Bank Ltd. (A/Stable/A-1),
whose ratings remain unchanged. While the market value of assets of a unit
trust managed by Macquarie Bank group has been adversely affected by the price
volatility in the U.S. credit markets, Macquarie Bank does not, at this time,
appear liable for any losses incurred by unit holders. Standard & Poor's
currently is of the opinion that the bank will not inject funds to recompense
such losses. Macquarie Bank's own direct exposure to the U.S. subprime
asset-backed securities is assessed to be less than significant relative to
the bank's asset book and earnings. Standard & Poor's does not anticipate any
long-lasting damage to Macquarie Bank's franchise arising from the recent unit
trust developments.
Standard & Poor's continues to monitor effects from the U.S. subprime
situation on other Australian market segments which may impact financial
services entities in Australia and could result in further rating action.
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information, visit www.standardandpoors.com.
Ratings are statements of opinion, not statements of fact or
recommendations to buy, hold, or sell any securities. Standard & Poor's
(Australia) Pty. Ltd. does not hold an Australian financial services license
under the Corporations Act 2001. Any rating and the information contained in
any research report published by Standard & Poor's is of a general nature. It
has been prepared without taking into account any recipient's particular
financial needs, circumstances, and objectives. Therefore, a recipient should
assess the appropriateness of such information to it before making an
investment decision based on this information.
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