Fitch: Market Conditions Favour Rise in Australian 'BBB' Rated MTN Issuance

(The following statement was released by the rating agency)

Link to Fitch Ratings' Report: Increasing Demand for Australian 'BBB' MTN 

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=727235

SYDNEY, February 10 (Fitch) Fitch Ratings says in a special report published 
today that rising appetite for Australian medium-term notes (MTN) will favour 
liquidity, tenor and funding costs for 'BBB' rated issuers over higher rated 
issuers. 

Refinancing is expected to pick-up in 2014 and 2015, ahead of the AUD14bn debt 
falling due in 2016. High investment grade issuers are likely to face rising 
yields as a result of the rise in the refinancing requirements of 'BBB' rated 
and non-investment grade issuers over the same period. 

Funding costs are likely to rise in 2014. The Australian dollar benchmark curve 
continues to steepen with relief for issuers coming from a contraction in credit 
spreads. 'BBB' rated issuers are expected to fare better than their higher rated 
counterparts as the credit spread between high investment grade and 'BBB' rated 
issuers continues to contract in 2014.

The report entitled "Increasing Demand for Australian 'BBB' MTN" is available at 
www.fitchratings.com or by clicking on the link above.

Contacts: 

Johann Kenny, CFA

Director

+61 2 8256 0348

Fitch Australia Pty. Ltd., Level 15, 77 King Street, Sydney NSW 2000

Vicky Melbourne

Senior Director

+61 2 8256 0325

Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: 
iselle.gonzalez@fitchratings.com.

Additional information is available at www.fitchratings.com

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