Macquarie Group Ltd. (MQG)’s debt rating was placed on review for possible downgrade by Moody’s Investors Service, which cited the company’s earnings outlook against a backdrop of “protracted weakness in the financial markets.”
The A2 senior unsecured rating on Australia’s biggest investment bank and its Prime-1 short-term rating will be studied, the New York-based ratings company said in an e-mailed statement.
“The review will also consider the challenges posed by Macquarie Group’s expansion, including risk management of an increasingly global and diverse business, as well as greater competition in many global capital markets business lines,” said Patrick Winsbury, a Moody’s senior vice president and analyst based in Sydney.
Net income at Sydney-based Macquarie declined in the six months to Sept. 30 to A$305 million ($317 million), missing the median estimate of seven analysts for profit of A$322 million. The bank said Oct. 28 that full-year earnings will be lower than the previous year if market conditions don’t improve.
To contact the reporter on this story: Malcolm Scott in Sydney at email@example.com
To contact the editor responsible for this story: Malcolm Scott at firstname.lastname@example.org