How NAB (ASX:NAB) shares may react after S&P revises credit rating outlook

Summary

  • National Australia Bank Ltd (ASX:NAB) said that Standard & Poor Global Ratings has revised the outlook for its long-term issuer credit rating.
  • The outlook has been upgraded to ‘stable’, from ‘negative’.
  • S&P has also revised the outlook of Bank of New Zealand’s (BNZ) long-term issuer credit rating to ‘stable’, from ‘negative’.

National Australia Bank Ltd (ASX:NAB) on Tuesday said that Standard & Poor Global Ratings (S&P) has revised the outlook for its long-term issuer credit rating to ‘stable’, from ‘negative’. It came a day after the global rating agency upgraded its long-term rating for Australia from ‘negative’ to ‘stable’, citing Prime Minister Scott Morison government’s swift response to the COVID-19 pandemic.

Australia's AU$2 trillion economy has rebounded sharply to above pre-pandemic levels thanks to the country's successful handling of the coronavirus pandemic together with massive fiscal and monetary stimulus.

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Source: ©Miflippo  | Megapixl.com

In addition, S&P has also revised the outlook of Bank of New Zealand’s (BNZ) long-term issuer credit rating to ‘stable’, from ‘negative’. S&P has affirmed both NAB and BNZ’s long-term issuer credit ratings at ‘AA-’, and ‘A-1+’ for short-term. Ratings on debt issued by NAB and BNZ also remained unchanged.

Source: © Herrbullermann  | Megapixl.com

Stock performance

On 7 June 2021, the stock closed at AU$26.64, down 3.16%, compared to the previous closing on 4 June 2021. NAB competes with AUB Group Ltd  (ASX:AUB), Janus Henderson Group plc (ASX: JHG), Netwealth Group Ltd (ASX:NWL), Hub24 Ltd (ASX:HUB), Commonwealth Bank of Australia (ASX:CBA), and National Australia Bank (ASX:NAB) in the financial sector.

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Meanwhile, on Monday, NAB said that it was under investigation for breaches of the country’s money laundering and counter-terrorism laws.

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