Original article by Cliona O’Dowd
The Australian – Page: 13 & 16 : 14-Jan-20
Morgan Stanley has warned that the bushfires crisis will have a direct financial cost on Australian banks, including an increase in insurance claims and loan losses. S&P expects loan arrears to increase in the wake of the bushfires, although rival ratings agency Moody’s says the proportion of loans that are affected by the bushfires is likely to be relatively small. Morgan Stanley adds that factors such as the impact of the bushfires on retail spending will have the biggest impact on bank earnings.
MORGAN STANLEY AUSTRALIA LIMITED, S&P GLOBAL RATINGS, MOODY’S INVESTORS SERVICE INCORPORATED