Fitch affirms Macquarie Group

Fitch Ratings said it affirmed the ratings of Macquarie Group Ltd. and its Australian subsidiaries, including Macquarie Bank Ltd., the main operating subsidiary of the group.

The outlook is stable.

The ratings affirmed include Macquarie Group's long-term issuer default rating at A-, short-term issuer default rating at F2, viability rating at A-, senior unsecured debt at A-, short-term debt at F2 and Macquarie preferred membership interests at BB.

Macquarie Bank's long-term issuer default rating was affirmed at A, short-term issuer default rating at F1, viability rating at A, government-guaranteed senior debt at AAA, senior unsecured debt at A, short-term debt at F1, subordinated debt at A-, Macquarie income preferred securities at BB+ and Macquarie bank exchangeable capital securities at BB+.

Macquarie Financial Holdings Ltd.'s long-term issuer default rating also was affirmed at A-, short-term issuer default rating at F2 and Macquarie International Finance Ltd.'s long-term issuer default rating at A- and short-term issuer default rating at F2.

The ratings reflect the group's solid capital position, conservative approach to liquidity management, diverse business mix and prudent risk management framework, Fitch said.

The ratings also consider the group's reliance on wholesale funding and earnings volatility, the agency said.

This volatility is offset somewhat through the company's more traditional commercial banking and wealth management services, Fitch said. These businesses have grown in recent years and provide a more stable earnings stream, the agency added.

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