Bank of Queensland Managing Director David Liddy today welcomed the announcement by Standard & Poors Ratings Services of an upgrade in the Banks credit rating from BBB to BBB+.
Standard & Poors made the announcement today following Bank of Queenslands release of a record Net Profit After Tax (NPAT) of $35.9 million for the first half of the 2005 financial year.
Standard & Poors also reaffirmed its short term rating of A-2.
Mr Liddy said the S&P ratings upgrade was welcome news and a good reward for some hard work by the Bank over the last four years.
Bank of Queensland has come a long way in the last three or four years and I am delighted that S&P has recognised the gains we have made, Mr Liddy said.
A decision like this has a material benefit for a fast-growing bank like Bank of Queensland as it makes debt capital cheaper and makes our debt securities more attractive to larger institutional investors.
Over time, these cheaper funds will help Bank of Queensland become more profitable, Mr Liddy said.
In its statement on the upgrade, S&P stated: The rating upgrade reflects Standard & Poors view that BOQ has transitioned into a financially stronger institution, with improvements evidenced across its business and financial profile over recent years likely to be sustainable over the medium-term.