Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 51

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 51
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 corresponding external rating.
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              ​                  ​        ​         ​          ​            ​            ​       
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​                                ​   Transaction-managed                                         
Financial statement disclosure       Westpac CRG         Moody’s Rating            S&amp;P Rating
Strong                           ​   A             ​     Aaa – Aa3        ​        AAA – AA–     
​                                ​   B             ​     A1 – A3          ​        A+ – A–       
​                                ​   C             ​     Baa1 – Baa3      ​        BBB+ – BBB–   
Good/satisfactory                ​   D             ​     Ba1 – B1         ​        BB+ – B+      
​                                ​   ​             ​     Westpac Rating                          
Weak                             ​   E             ​     Watchlist                               
​                                ​   F             ​     Special Mention                         
​                                ​   G             ​     Substandard/Default                     
​                                ​   H             ​     Doubtful/Default                        
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Program-managed portfolio
The program-managed portfolio generally includes retail products such as mortgages, personal lending (including credit cards) as well as certain small to medium sized enterprise lending. These credit exposures are grouped into pools of similar risk based on the analysis of characteristics that have historically predicted the likelihood of default, and a PD is assigned relative to the credit exposure’s pool. The exposure is then assigned to strong, satisfactory or weak by benchmarking that PD against transaction-managed exposures, which are in turn mapped to external ratings per the above table. In addition, any program-managed exposures that are one or more days past due are classified as weak.
11.3.  Credit risk concentrations and maximum exposure to credit risk
Credit risk concentrations
Credit risk is concentrated when a number of counterparties are engaged in similar activities, have similar economic characteristics and thus may be similarly affected by changes in economic or other conditions.
Westpac monitors its credit portfolio to manage risk concentrations and rebalance the portfolio.
Individual customers or groups of related customers
Westpac has large exposure limits governing the aggregate size of credit exposure normally acceptable to individual customers and groups of related customers. These limits are tiered by customer risk grade.
Specific industries
Exposures to businesses, governments and other financial institutions are classified into a number of industry clusters based on related Australian and New Zealand Standard Industrial Classification (ANZSIC) codes and are monitored against Westpac’s industry risk appetite limits.
Individual countries
Westpac has limits governing risks related to individual countries,