Ratings agency Moody's has downgraded the long-term debt ratings of New Zealand's four major banks.
They are all subsidiaries of Australia's big four - ANZ National, Westpac, BNZ and ASB.
They have cut the rating to double A 3 from double A 2.
The downgrade follows a similar move on Australia's big four lenders last week.
The reasons behind it are the same - a reliance on offshore debt funding.
Moody's said New Zealand banks have made a significant shift in funding profiles towards customer deposits,which are restricted by the country';s limited customer base.
The financial strength ratings of ANZ National, BNZ and Westpac NZ were also downgraded to C+ from C, while ASB Bank's rating was confirmed at C+.
The outlook for all four NZ banks was stable.
- Newstalk ZB
Moody's downgrades major banks' ratings
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