Big Aussie banks get a downgrade

Moody's Investors Service has downgraded the long-term, senior unsecured debt ratings of Australia's four major banks from Aa1 to Aa2 on the back of wholesale funding worries.

The banks affected are the ANZ, ASB's parent Commonwealth Bank of Australia, Westpac and BNZ's parent National Australia Bank.

The ratings for the banks' subordinated debt were also downgraded to Aa3 from Aa2. In addition, the Bank Financial Strength Ratings (BFSR) of the four majors were downgraded to B- from B.

"The downgrade reflects our view of the Australian banking system's structural sensitivity to conditions in wholesale funding markets", Moody's Senior Vice President Patrick Winsbury said.