Bank of Queensland says its ability to compete with the big four has been boosted by an upgrade of its long-term credit rating by Moody’s.
Bank of Queensland’s efforts to strengthen its balance sheet has been rewarded with Moody’s upgrading its long-term credit.
The bank’s long-term rating is now A3, up from Baa1, Moody’s said.
Chief executive Stuart Grimshaw said the move would improve BoQ’s ability to compete with the big four banks, who have lower funding costs.
“A higher credit rating goes some way towards partially reducing this funding cost gap and increases the range of funding opportunities available to us,” he said in a statement on Thursday.
Moody’s senior analyst Frank Mirenzi said the upgrade reflected the bank’s steps to strengthen its balance sheet, including the sale of non-performing loans, and raising capital.