The application of Moody’s revised Advanced Loss Given Failure analysis to certain Australian banks yesterday has led to a shake-up of credit ratings for four banks, including two downgrades for regional banks. Moody’s Investors Service yesterday downgraded the long-term senior unsecured debt rating for Bendigo and Adelaide Bank to Baa1 from a3. Bendigo received an upgrade on its rating for subordinated debt to Baa2 from Baa3. The rating on the bank’s long-term deposits lifted to a1 from a3. For Bank of Queensland, Moody’s cut the long-term senior unsecured debt rating by one notch to Baa1. Moody’s does not currently rate any of BOQ’s outstanding subordinated debt. For a couple of bigger banks the news was better, with Moody’s upgrading the long-term senior unsecured debt rating for ANZ to Aa2 from Aa3. Moody’s also upgraded ANZ’s subordinated debt rating to A3 from Baa1. Moody’s has reaffirmed ANZ’s ‘stable’ outlook. Macquarie Bank had its long-term issuer rating lifted to Aa2 from A1, while Macquarie Group had its long-term issuer rating lifted to A1 from A2. Moody’s said the rating actions “follow the introduction of an operational resolution regime for banks in Australia designated by the local regulator as ‘significant financial institutions’, together with other banks Moody’s expects the authorities to designate as providing critical functions important to financial system stability, or to ensure the availability of essential financial services.”