The nations for largest banks were downgraded by Standard & Poor's, where the nation's largest lender which is Commonwealth Bank of Australia (CBA) was downgraded as well.
Also, Commonwealth, Westpac Banking Corp., Australia & New Zealand Banking Group Ltd. and National Australia (NAB) Bank Ltd. were cut by one level from AA to AA-, along with Australia's largest investment bank which is Macquarie Group Ltd. (MQG) was downgraded from A- to BBB.
On the other hand, Standard Chartered Plc (STAN) was raised to A+ from A, while Japan's Nomura Holdings Inc. (8604) was kept at BBB+.
Meanwhile, economic analysts said it's a good outcome for the four major banks and they are still in the AA band, and remain among the highest rated banks globally, and as a result, shares of Commonwealth Bank rose by 0.9% and Westpac (WBC) gained 1%, also National Australia dropped by 0.1% and ANZ Bank gained 0.4%.
Finally, Standard & Poor's cut this week ratings of some U.S. and Europe banks as a result of changes to its criteria initiated three years ago.
Also, China's three biggest lenders were upgraded more than most of their largest U.S. competitors.