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Moody's Investors Service yesterday announced that it has approved the government’s wholesale bank guarantee plans and confirmed that it will assign the government’s AAA rating to eligible banks looking to access offshore money.
The ratings agency said the scheme should reinforce market confidence and would not threaten the government’s own credit rating or stability.
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Under the scheme banks will be able to borrow the government’s AAA rating, enabling them to access international funds at a cheaper price. Banks will be charged a fee of between $7000 and $15,000 by the government per $1 million raised, depending on their credit rating.
Fitch Ratings is expected to deliver its stance on the scheme this week.
