SYDNEY, May 5 (Reuters) - Australia’s central bank on Tuesday said it would accept corporate debt rated less than triple-A as collateral in daily money market operations, widening the range of assets it can lend against.
The Reserve Bank of Australia (RBA) said it would now take investment grade debt, corresponding to an average of BBB- for longer-term securities and A-3 for short-term debt.
Previously, the minimum requirements for repo eligibility were an average credit rating of AAA for long-term corporate securities and A-1 for short-term corporate securities.
This covers unsubordinated debt securities issued in Australian dollars by corporations that are not authorised deposit-taking institutions. (Reporting by Wayne Cole; Editing by Clarence Fernandez)