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Junk rating for Macquarie hybrid

Marketing for the proposed hybrid security issue from Macquarie Bank is stepping up, with the release of the first credit rating yesterday.Late on Tuesday, Macquarie said it planned to sell US$500 million of unsecured subordinated notes and exchangeable for shares in Macquarie Group in certain circumstances.Fitch Ratings applied a rating of BBB- to the securities, five notches below the A+ rating Fitch has on the bank's long-term debt.Macquarie, meanwhile, yesterday briefed staff on further plans to outsource back office functions, the Financial Review reported.Work on reconciliation, accounts maintenance and cash processing will be transferred to external suppliers offshore.

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