HomeAbout UsServicesRating MethodologyRatings & ReportsNewsContact UsLegal & Regulatory
Australia Ratings
Board of Directors
Analytical Team
The Rest of the Team
Credit Ratings
Product Complexity Indicators
Credit Training Courses
Private Credit Services
Operational Capability Assessment
RMBS & ABS Loan Servicer Due Diligence
Ratings Definitions
Rating Process
Corporate Rating Methodology
Financial Institutions Methodology
Infrastructure Rating Methodology
Insurance Methodology
Managed Funds Methodology
Operational Capability Assessments
State & Territory Government Methodology
Current Ratings & Rankings List
Rating Reports
Operational Capability Assessments
ASX Debt & Hybrid Research Scheme
Media Releases
Code of Conduct
Financial Services Guide
Privacy Policy
Electricity Distribution Network Company Methodology
Australian Ports Methodology
Water and Wastewater Utilities Methodology
Energy Generators Methodology

Welcome to Australia Ratings. 
An Australian company dedicated to helping investors better understand credit and product complexity risks in fixed income investments. If you would like to keep up to date with our latest news please join our mailing list.  The Australia Ratings Team.

• Credit Ratings

• Product Complexity Indicators

• Private Credit Services

• Credit Training Courses

• Operational Capability Assessments

Join our mailing list to be kept informed about developments and updates at Australia Ratings.  Click here to join.




Melbourne, Monday 7 December 2015 – Australia Ratings has reviewed and affirmed its credit rating of ‘BBB+’ of the Heritage Bank Retail Bonds (the Bonds). This rating is the highest long-term rating in the intermediate category of creditworthiness on the rating scale of Australia Ratings. The Bonds are senior and unsecured debt obligations of Heritage Bank Limited.

Australia Ratings also confirmed its product complexity indicator of ‘GREEN’ on the Bonds, indicating that Australia Ratings considers the Bonds to be a debt investment with simple and straight forward terms and conditions. A coupon of 7.25% p.a. is payable quarterly in arrears until maturity of the Bonds in June 2017.

Australia Ratings’ credit analyst, Chris Dalton said “the ‘BBB+’ rating of the Bonds reflects the credit quality of Heritage Bank”. Mr Dalton added “earnings and profitability dipped slightly in FY2015 reflecting competition in the markets for term deposits and residential mortgages. Heritage’s performance in keeping down arrears remains significantly better than the industry average, with only 0.39% of loans in arrears as at 30 June 2015. Heritage continues to execute a consistent business strategy and based on the current economic outlook and the business and financial risk profile of Heritage, the rating is expected to remain unchanged in the medium term”.

The credit rating reflects the following key strengths of Heritage Bank’s business:
  • a low risk portfolio of residential mortgages with below industry average arrears and losses;
  • a conservative risk appetite with regard to maintaining capital and liquidity above regulatory capital requirements; and
  • a diversified funding base with experience in raising funds via both wholesale and retail funding markets.

The credit rating also reflects the following key risks to Heritage Bank’s business:
  • a slowing of demand and increased competition in the residential mortgage market which may constrain earnings growth; and
  • a reliance upon retained earnings to build capital base for future asset growth.

The ‘GREEN’ Product Complexity Indicator of Bonds is confirmed. A GREEN designation indicates the terms and conditions of the Bonds are simple and straightforward with a very low level of complexity on Australia Ratings’ five point Product Complexity Indicator scale.

For more information contact:

Chris Dalton, 0403 584 600, chris.dalton@australiaratings.com




Shopping cart is empty.

Regulatory & Legal © Copyright 2011 Australia Ratings Site By CIP This website is published by Australia Ratings Pty Ltd (ABN 90 141 393 375), holder of AFS licence 346138.  The information contained in this website is of a general nature only, and does not take into account your objectives, financial situation and needs. You should consult your own professional advisers before making an investment decision.