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Fitch Withdraws 68 CBA Issue Ratings; Adds 'emr' to One Other
September 26, 2017 / 1:34 AM / in 21 days

Fitch Withdraws 68 CBA Issue Ratings; Adds 'emr' to One Other

(The following statement was released by the rating agency) SYDNEY, September 25 (Fitch) Fitch Ratings has withdrawn ratings on one Commonwealth Bank of Australia (CBA; AA-/Stable) issue and revised a rating on a further issue to assign an 'emr' suffix following the discovery of an error in the application of criteria with respect to these issues. The rating actions are as follows: A suffix of 'emr' has been assigned to the rating of the issue with an ISIN of XS0373997955 to reflect embedded market risk in determination of its coupon amounts. The rating on the issue with an ISIN number of XS0383179032 has been withdrawn because the issue is not principal-protected and, therefore, should not be rated according to Fitch's Global Bank Rating Criteria with respect to ratings of structured notes. In addition, Fitch has withdrawn ratings of 67 issues which have been called. The ISIN numbers of these issues are: XS0356203462 XS0254641763 XS0355982868 XS0470765107 XS0327655212 XS0313051798 XS0284265690 XS0284393260 XS0354091224 XS0345054034 XS0302731418 XS0304469090 XS0343648779 XS0302514400 XS0242574878 USQ26915CL29 XS0298687434 XS0329927494 XS0329927148 XS0211153043 XS0280689307 XS0433093589 XS0156149352 XS0293415161 XS0204796048 XS0345709900 XS0302886535 XS0366616661 XS0343214184 XS0371804088 XS0325913530 XS0208712298 XS0358821204 XS0338955692 XS0224300920 XS0310313464 XS0354398207 XS0205730822 XS0354374109 XS0339780222 XS0355566307 XS0281896133 XS0342510707 XS0234768439 XS0283215464 XS0283214491 XS0352656432 XS0352794316 XS0210014733 XS0225860096 XS0203922314 XS0231040832 XS0229880264 XS0364321017 XS0207211896 XS0292736930 XS0236081625 XS0332508273 XS0324798551 XS0357719219 XS0354558685 XS0432769643 XS0386714991 XS0434654736 XS0340174332 XS0430677376 XS0359658076 KEY RATING DRIVERS Fitch identified the error with respect to these issue ratings as part of a review of financial institution issue ratings assigned prior to changes to criteria relating to structured notes in 2010 and 2011. The review followed discovery of the error with respect to another issuer's issue ratings. The applicable criteria were revised in August 2010 to adopt 'emr' suffixes and in August 2011 to no longer assign ratings to issues that were not principal-protected. The bonds with 'AA-(emr)' ratings represent senior unsecured obligations of CBA and are aligned with the bank's Issuer Default Rating (IDR). CBA's Long-Term IDR is driven by its Viability Rating of 'aa-' and reflects its dominant franchise in Australia and New Zealand as well as increasing macroeconomic challenges. Please see <a href="https://www.fitchratings.com/site/pr/1020141 ">Fitch Affirms Australia's Four Major Banks, dated 6 March 2017 for further information. RATING SENSITIVITIES The issues for which the suffix of 'emr' has been assigned are sensitive to movements in CBA's Viability Rating. For more details see <a href="https://www.fitchratings.com/site/pr/1020141">Fitch Affirms Australia's Four Major Banks, dated 6 March 2017. Contact: Primary Analyst Tim Roche Senior Director +61 2 8256 0310 Fitch Australia Pty Ltd Level 15, 77 King St, Sydney NSW 2000 Secondary Analyst Jack Do Director +61 2 8256 0355 Committee Chairperson Jonathan Lee Senior Director +886 2 8175 7601 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Global Bank Rating Criteria (pub. 25 Nov 2016) here Additional Disclosures Solicitation Status here#solicitation Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

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