US ratings agency out with a client note on Australian banks 8 June 2016
Say Moody's:
Moody's Investors Service says that signs of a re-acceleration in Australian house prices and increasing household leverage are credit negative for Australian banks, because these factors raise the banks' sensitivity to downside risk in the housing market, and can lead to potential second-order impacts on broader economic activity.
Nevertheless, strong employment conditions and low interest rates continue to support the quality of the banks' housing portfolios.
Data released by CoreLogic last week show that activity in the Australian housing market-after moderating in late 2015 and early 2016-is showing signs of reacceleration, led by strong price growth in Sydney and Melbourne during April and May 2016.
At the same time, household debt/income ratios continue to rise.
Moody's with their full release here
