Rating Action: Moody's withdraws Members Equity Bank's ratings due to reorganizationGlobal Credit Research - 02 Mar 2022Sydney, March 02, 2022 -- Moody's Investors Service has withdrawn all ratings of Members Equity Bank Limited (ME Bank)."IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. SUCH USE WOULD BE RECKLESS AND INAPPROPRIATE. SEE FULL DISCLAIMERS BELOW."Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL463431 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.Before the withdrawal, the outlooks on the bank's A3 long-term issuer ratings were stable.ME Bank's $400 million medium-term note maturing in July 2022 with ISN: AU3FN0048948 has become an obligation of Bank of Queensland Limited (BoQ, A3 stable). The rating on this instrument had been upgraded to the same level as BoQ in July 2021, reflecting BoQ's ownership of ME Bank and the long-standing intention of the two banks to combine into a single authorized deposit-taking institution (ADI).RATINGS RATIONALEThe withdrawal considers the transfer of all of ME Bank's assets, liabilities, rights and obligations to BoQ on 28 February 2022. ME Bank has ceased to operate as an independently licensed bank but continues as a brand of BoQ.ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONSIn assessing the governance implications of the consolidation of ME Bank's banking operations under the banking license of BoQ and the assumption ME Bank's medium-term note by BoQ, Moody's considers BoQ's track record of maintaining a strong financial profile, its listing on the Australian stock exchange and the regulation of both banking entities by the Australian Prudential Regulation Authority (APRA) to be supportive factors.Members Equity Bank Limited, headquartered in Melbourne, Victoria, had total assets of AUD30 billion (USD23 billion) as of the end of June 2021. It became a wholly-owned subsidiary of Bank of Queensland in July 2021.REGULATORY DISCLOSURESThe List of Affected Credit Ratings announced here are all solicited credit ratings. For additional information, please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com. Additionally, the List of Affected Credit Ratings includes additional disclosures that vary with regard to some of the ratings. Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL463431 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items:** Rating Solicitation** Issuer Participation** Participation: Access to Management** Participation: Access to Internal Documents ** Endorsement ** Lead Analyst ** Releasing Office For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.At least one ESG consideration was material to the credit rating action (s) announced and described above.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Tanya Tang Analyst Financial Institutions Group Moody's Investors Service Pty. Ltd. Level 10 1 O'Connell Street Sydney NSW 2000 Australia JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077 Patrick Winsbury Associate Managing Director Financial Institutions Group JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077 Releasing Office: Moody's Investors Service Pty. Ltd. Level 10 1 O'Connell Street Sydney NSW 2000 Australia JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077 © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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