Standard and Poor’s (S&P) has revised its outlook for National Australia Bank (NAB) and its subsidiaries from negative to stable following the bank’s success in raising $3 billion of new equity capital with an institutional placement of 150 million new shares. It has also affirmed NAB’s AA rating.
The initial placement size of $2 billion was oversubscribed from a range of high quality institutional investors, leading NAB to increase the size of the offer by $1 billion.
The equity issue will significantly enhance the bank’s ability to absorb other credit losses, S&P said.
