Auswide is working to decrease its reliance on depositors to bankroll its lending book expansion plans. Depositors currently supply about 70 percent of the bank's funding - stable but less flexible that hitting the wholesale funding markets.The situation is changing for the better, as Fitch Ratings has assigned Auswide Bank Ltd a long-term foreign-currency issuer default rating of BBB+ with a stable outlook, and viability rating at bbb+, among other actions. This is in line with ratings from Moody's, also ranking Auswide at the end of the investment grade scale.Auswide continues to improve its underwriting standards and risk controls, which Fitch views as important given its geographically concentrated loan book in its traditional heartland in central Queensland."We believe that the greater focus on asset growth and use of the broker channel is likely to increase the risk profile of the mortgage portfolio," Fitch said."Auswide's mortgage and business loan underwriting standards are largely in line with domestic peers. Asset quality has remained sound, but it has strong geographic concentration in parts of Queensland," Fitch's media release said. "Auswide has been able to generate acceptable profitability over the last few years in line with its direct peers. We expect Auswide's profitability to remain sound on the back of its prudent underwriting standards, and recent and ongoing efficiency improvements." Dale Hancock, group treasurer at Auswide Bank, said the dual rating, which incorporates the Moody's rating of Baa2/P2, would allow Auswide to continue to diversify its funding program at expected tighter issuance levels, "including the ability to issue two- and three-year senior unsecured FRNs from this point." Hancock was confident that the boost from having two investment grade ratings will provide a solid platform for Auswide to grow its residential, business and consumer finance lending, Auswide sources about 70 per cent of its funding from customer deposits, mainly stable retail deposits. The rest is from wholesale markets, according to Fitch. "The bank continues to be reliant on wholesale funding markets and we do not foresee any significant change in the funding model in the near term given Auswide's growth aspirations," Fitch said.