The ratings agency has smiled on another Australian bank with its outlook and rating revisions. Fitch has recently published its views on a raft of banks down under.

One of the “Big Three” rating agencies has raised its outlook on Australia-based bank Macquarie Group to “stable” from “negative” because of a stronger-than-expected business climate and measures to boost economies in the countries where it operates.

Macquarie’s service offerings include wealth management. 

Fitch Ratings’ revisions apply to Macquarie Group Limited and its Australian subsidiaries. The subsidiaries are: Macquarie Bank Limited (MBL), Macquarie Financial Holdings Pty Limited (MFHL) and Macquarie International Finance Limited (MIFL).

Senior debt ratings are supported by “robust risk controls and a high-quality management team, which has driven a strong financial profile over a number of years,” Fitch Ratings said.

“These factors offset the greater level of business model complexity, which has a significant level of non-traditional banking operations relative to domestic bank peers, and its higher reliance on wholesale funding compared with some international peers.”

Australia’s banks have been through a testing time along with many peers amid the COVID-19 pandemic. Fitch improved its main debt ratings on Australia and New Zealand Banking Group, Westpac, National Australia Bank, and Commonwealth Bank of Australia, a few weeks ago.