Credit rating downgrades have left MyState Bank's parent company deeply unimpressed.
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Ratings agency Moody's downgraded Tasmanian-based banking and wealth management company MyState Limited's long-term issuer rating from Baa2 to Baa3 and its short-term issuer rating from P-2 to P-3.
Moody's downgraded MyState Bank's long-term issuer rating from Baa1 to Baa2 and left its short-term issuer rating at P-2.
The ratings outlooks were changed from under review to stable.
MyState - which includes MyState Bank and TPT Wealth - defended its performance.
"The operating conditions for all banks have changed materially due to the economic impacts that are flowing from the COVID-19 global pandemic," MyState managing director and chief executive Melos Sulicich said.
"The outcomes are difficult to predict with any degree of certainty.
"Notwithstanding this, we are disappointed in the outcome of the Moody's review."
Mr Sulicich argued the company's most recent results showed the success of its customer focussed approach, digitising the business and an ongoing focus on lower-risk owner-occupier mortgages.
"Consistent with this strategy, MyState Bank's arrears performance has historically been significantly below industry peers and we remain comfortably capitalised above regulatory minimums," Mr Sulicich said.
"The overall level of credit loss provisioning remains appropriate and will be reviewed as new information becomes available."
He said an update on MyState's September quarter performance would be provided at the annual meeting on October 21.
MyState reported net profit after tax of $30.1 million for 2019-20, down from $31 million in the previous year.
It made a $4.9 million provision for credit losses during the year.
Core operating profit increased by 12.9 per cent before provisions and tax.