Moody's downgrades major banks' ratings

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