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Australia's 'Big Four' banks face credit rate downgrade logo 19/06/2017

© AAP Image Australia's big four banks have been downgraded by Moody's today amid growing risks in the household sector.

A total of 12 Australian banks were downgraded.

Moody's said Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp were downgraded to Aa3 from Aa2.

"In Moody's view, elevated risks within the household sector heighten the sensitivity of Australian banks' credit profiles to an adverse shock, notwithstanding improvements in their capital and liquidity in recent years," the investor group said in a statement.

"While Moody's does not anticipate a sharp housing downturn as a core scenario, the tail risk represented by increased household sector indebtedness becomes a material consideration in the context of the very high ratings assigned to Australian banks."

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